The demand for a good is said to be _____ when quantity demanded changes proportionately to price changes.
A)perfectly elastic
B)inelastic
C)unit elastic
D)elastic
E)perfectly inelastic

Question

Quizplus · Accepted Answer

If a good has a unit elastic demand curve, it means that the percentage change in quantity demanded is equal to the percentage change in price. In other words, if the price of the good increases by 10%, the quantity demanded will decrease by 10%, resulting in a constant total revenue. Therefore, the demand for the good is neither perfectly elastic nor perfectly inelastic, and is not highly sensitive or unresponsive to price changes.

The Demand for a Good Is Said to Be _____