If the price elasticity of demand for opera tickets in Orlando is 1.00,then the demand for opera tickets in Orlando is
A) unit elastic.
B) elastic.
C) perfectly inelastic.
D) inelastic.
E) perfectly elastic.

Question

Quizplus · Accepted Answer

A price elasticity of demand of 1.00 means that a 1% increase in price will result in a 1% decrease in quantity demanded. This indicates that the percentage change in price and quantity demanded are equal, resulting in a unit elasticity. Therefore, the correct answer is A) unit elastic.

If the Price Elasticity of Demand for Opera Tickets in Orlando