Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market.
-If a 1 percent change in the price of a good causes a 1 percent change in the quantity demanded of that good, then the demand is said to be:
A)perfectly elastic.
B)income elastic.
C)unit-elastic.
D)inelastic.
E)perfectly inelastic.

Question

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market. 
-If a 1 percent change in the price of a good causes a 1 percent change in the quantity demanded of that good, then the demand is said to be:
A)perfectly elastic. 
B)income elastic. 
C)unit-elastic. 
D)inelastic. 
E)perfectly inelastic.

Quizplus · Accepted Answer

A 1 percent change in the price causes a 1 percent change in the quantity demanded, which means the elasticity of demand is equal to 1. This is known as unit-elastic demand.

​Figure 53

Figure 53