If price elasticity of demand is 1.0,demand for the commodity is
A) of unitary elasticity.
B) price postelastic.
C) price elastic.
D) price inelastic.
E) price preelastic.

Question

Quizplus · Accepted Answer

If the price elasticity of demand is 1.0, it means that for every 1% change in price, the quantity demanded will change by 1%. This indicates that the demand for the commodity is of unitary elasticity.

If Price Elasticity of Demand Is 1