A unitary elastic demand means that if the percentage change in price is _____, then the percentage change in quantity demanded is _____.
A) 2%; 1%
B) 5%; 5%
C) 2%; 4%
D) 5%; 0%

Question

Quizplus · Accepted Answer

Unitary elastic demand means that the percentage change in quantity demanded is exactly the same as the percentage change in price, hence a 5% change in price leads to a 5% change in quantity demanded.

A Unitary Elastic Demand Means That If the Percentage Change