If tablets have an absolute price elasticity of 1, the demand for tablets is
A) unit elastic.
B) inelastic.
C) perfectly elastic.
D) elastic.

Question

Quizplus · Accepted Answer

If the absolute price elasticity of tablets is 1, then a 1% increase in price would lead to a 1% decrease in quantity demanded. This means that the percentage change in quantity demanded is equal to the percentage change in price, resulting in a unit elastic demand.

If Tablets Have an Absolute Price Elasticity of 1, the Demand