For demand to be unit elastic,
A)the percentage change in quantity demanded must be equal to the associated percentage change in price.
B)the percentage change in quantity demanded must be less than the associated percentage change in price.
C)quantity demanded must change with a change in price.
D)demand must change with a change in price.
E)the percentage change in quantity demanded must be greater than the associated percentage change in price.

Question

Quizplus · Accepted Answer

Unit elasticity of demand means that for every percentage change in price, there is an equal percentage change in quantity demanded. This is only possible when the percentage change in quantity demanded is equal to the associated percentage change in price.

For Demand to Be Unit Elastic