The demand for movies is unit elastic if
A) a 5 percent decrease in the price leads to an infinite increase in the quantity demanded.
B) a 5 percent increase in the price leads to a 5 percent decrease in the quantity demanded.
C) any increase in the price leads to a 1 percent decrease in the quantity demanded.
D) a 5 percent increase in the price leads to a 5 percent increase in total revenue.

Question

Quizplus · Accepted Answer

Unit elastic demand means that the percentage change in quantity demanded is equal to the percentage change in price, resulting in no change in total revenue.

The Demand for Movies Is Unit Elastic If