In Figure 20.1, at what price is the elasticity of demand unitary?
A) $40.
B) $100.
C) $160.
D) $200.

Name: In Figure 20.1, at what price is the elasticity of demand unitary? A) $40. B) $100. C) $160. D) $200.
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Question

In Figure 20.1, at what price is the elasticity of demand unitary?
A) $40. 
B) $100. 
C) $160. 
D) $200.

Quizplus · Accepted Answer

At a price of $100, the elasticity of demand is unitary. Any price below $100 will have elastic demand (e > 1) and any price above $100 will have inelastic demand (e < 1).