If the price of orange juice rises 10%,and as a result the quantity demanded falls by 10%,then one can conclude that the demand for orange juice
A) is perfectly elastic.
B) is inelastic.
C) has a unitary elasticity.
D) has a constant elasticity.

Question

Quizplus · Accepted Answer

When the percentage change in quantity demanded is equal to the percentage change in price, the demand is said to have unitary elasticity. This means that the proportionate change in quantity demanded is exactly the same as the proportionate change in price, indicating a unitary elasticity of demand.

If the Price of Orange Juice Rises 10%,and as a Result