ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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unit elastic
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rigidness
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needs
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wants
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Detailed explanation-1: -Unitary elasticity means that a given percentage change in price leads to an equal percentage change in quantity demanded or supplied.
Detailed explanation-2: -Demand is unit elastic when a change in price causes a proportional change in quantity demanded. To measure the elasticity of demand, compare the percentage change in quantity demanded to the percentage change in price.
Detailed explanation-3: -Unit elastic demand is the economic theory that assumes a change in product price causes an equal and proportional change in the quantity demanded. In other words, the percentage change in demand for the product is equal to the percentage change in price.
Detailed explanation-4: -As a rule of thumb, if the quantity of a product demanded or purchased changes more than the price changes, then the product is considered to be elastic (for example, the price goes up by 5%, but the demand falls by 10%).
Detailed explanation-5: -When percentage change in quantity demanded is equal to the percentage change in price, the elasticity of demand is unitary elastic.