If a good has an elasticity of demand equal to 1, then demand for the good is
A) highly inelastic.
B) unitary elastic.
C) not elastic.
D) highly elastic.

Name: If a good has an elasticity of demand equal to 1, then demand for the good is A) highly inelastic. B) unitary elastic. C) not elastic. D) highly elastic.
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Question

Quizplus · Accepted Answer

When the elasticity of demand equals 1, it means that the percentage change in quantity demanded is equal to the percentage change in price, indicating unitary elasticity.

If a Good Has an Elasticity of Demand Equal to 1