When the price elasticity of demand is ________, demand for the good is unit elastic.
A)equal to infinity
B)greater than 1
C)equal to 1
D)between 1 and zero
E)equal to zero.

Question

Quizplus · Accepted Answer

When the price elasticity of demand is equal to 1, it means that the percent change in quantity demanded is equal to the percent change in price. This indicates that the demand for the good is unit elastic, as the change in price has the same effect on the quantity demanded. If the elasticity is greater than 1, demand is considered elastic, meaning that a small change in price has a relatively large effect on quantity demanded. If the elasticity is less than 1, demand is considered inelastic, meaning that a change in price has a relatively small effect on quantity demanded.

When the Price Elasticity of Demand Is ________, Demand for the Good