When demand is unit elastic, a 7 percent change in the price of the good
A) will cause a change in quantity demanded of less than 7 percent.
B) will cause a change in quantity demanded equal to 7 percent.
C) will cause a change in quantity demanded greater than 7 percent.
D) will not cause any change in quantity demanded.

Question

Quizplus · Accepted Answer

When demand is unit elastic, a change in price will result in an equal percentage change in quantity demanded. Therefore, a 7 percent change in the price of the good will cause a change in quantity demanded equal to 7 percent.

When Demand Is Unit Elastic, a 7 Percent Change in the Price