TABLE 10-1
-Refer to Table 10-1,which displays the demand schedule for a single-price monopolist.At what level of demand is the price elasticity of demand equal to 1?

Question

Quizplus · Accepted Answer

The price elasticity of demand is equal to 1 when the percentage change in quantity demanded is equal to the percentage change in price. In this case, the price elasticity of demand is equal to 1 between 6 and 7 units, because the percentage change in quantity demanded is 10% (from 6 to 7 units) and the percentage change in price is also 10% (from $10 to $11).

TABLE 10-1 -Refer to Table 10-1,which Displays the Demand Schedule for a for a Single-Price