If a 1 percent change in the price of a good causes a 1 percent change in the quantity demanded of that good,then demand is said t be:
A)perfectly elastic.
B)elastic.
C)unit-elastic.
D)inelastic.
E)perfectly inelastic.

Question

Quizplus · Accepted Answer

When the percentage change in price is the same as the percentage change in quantity demanded, demand is said to be unit-elastic. This means that the change in price has an equal impact on the quantity demanded, resulting in a constant elasticity of demand.

If a 1 Percent Change in the Price of a Good