What is unitary elasticity?
A)An elasticity coefficient which is negative.
B)An elasticity coefficient which is equal to zero.
C)An elasticity coefficient which is equal to one.
D)A percentage change in quantity which is exactly equal to the percentage change in demand.
E)Where elasticity and inelasticity are balanced.

Question

Quizplus · Accepted Answer

Unitary elasticity means that the percentage change in the quantity demanded is exactly equal to the percentage change in price. This occurs when the elasticity coefficient is equal to one. It signifies a balanced relationship between the changes in price and quantity demanded, indicating that a change in price doesn't have a significant impact on demand.

What Is Unitary Elasticity