If a 10 percent price increase generates a 10 percent decrease in quantity demanded,then demand is
A) unit elastic.
B) elastic.
C) perfectly inelastic.
D) perfectly elastic.
E) inelastic.

Question

Quizplus · Accepted Answer

When a percentage change in price results in an equal percentage change in quantity demanded, the demand is considered unit elastic, indicating a direct one-to-one relationship between price change and demand change.

If a 10 Percent Price Increase Generates a 10 Percent