Table 9.3
$\begin{array}{llcc}
\text { Quantity } &\text { Price (\$)} \
\hline0 &7\
1&6\
2&5\
3&4\
4&3\
5&2\
6&1
\end{array}$

-Refer to Table 9.3.Identify the range of output for which demand is unit elastic.
A)1 unit to 2 units
B)2 units to 3 units
C)3 units to 4 units
D)4 units to 5 units
E)5 units to 6 units

Question

Table 9.3
 $\begin{array}{llcc}
  \text { Quantity } &\text { Price (\$)}  \
\hline0 &7\
 1&6\
2&5\
  3&4\
 4&3\
5&2\
6&1
\end{array}$

-Refer to Table 9.3.Identify the range of output for which demand is unit elastic.
A)1 unit to 2 units
B)2 units to 3 units
C)3 units to 4 units
D)4 units to 5 units
E)5 units to 6 units

Quizplus · Accepted Answer

Demand is said to be unit elastic when the percentage change in quantity demanded is equal to the percentage change in price, resulting in a price elasticity of demand equal to 1. Looking at Table 9.3, we can see that the price changes from $4 to $3 when the quantity demanded changes from 3 to 4. Thus, the range of output for which demand is unit elastic is 3 units to 4 units.

Table 93 Quantity Price ($)07162534435261\begin{array}{llcc} \text { Quantity } &\text { Price (\$)} \\\hline0 &7\\ 1&6\\2&5\\ 3&4\\ 4&3\\5&2\\6&1\end{array} Quantity 0123456​ Price ($)7654321​​

Table 93 $\begin{array}{llcc} \text { Quantity } &\text { Price (\$)} \\\hline0 &7\\ 1&6\\2&5\\ 3&4\\ 4&3\\5&2\\6&1\end{array}$