If the percentage change in the quantity demanded of a good equals the percentage change in price, price elasticity of demand is:
A) elastic.
B) inelastic.
C) perfectly elastic.
D) unitary elastic.

Question

Quizplus · Accepted Answer

A percentage change in quantity demanded that equals a percentage change in price indicates a unitary elastic demand, meaning that the change in quantity demanded is proportional to the change in price.

If the Percentage Change in the Quantity Demanded of a Good