If the demand for a steak is unit elastic, then
A)the percentage change in quantity demanded is 1 percent greater than the percentage change in price.
B)the percentage change in quantity demanded is equal to the percentage change in price.
C)the percentage change in quantity demanded is 100 percent greater than the percentage change in price (in absolute value).
D)quantity demanded does not respond to changes in price.

Question

Quizplus · Accepted Answer

When the demand for a good is unit elastic, the percentage change in quantity demanded is equal to the percentage change in price. This means that a change in price will result in an equal change in the quantity demanded in the opposite direction, resulting in a constant total revenue.

If the Demand for a Steak Is Unit Elastic, Then