ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If the number is equal to 1, elasticity of demand is unitary. In other words, quantity changes at the same rate as price.

Detailed explanation-2: -If price elasticity is exactly 1 (price change leads to an equal percentage change in demand), it is known as unitary elasticity. The availability of a substitute for a product affects its elasticity.

Detailed explanation-3: -The demand for a good is unitary elastic if a change in the price of that good causes an equal change in quantity demanded. In other words, the elasticity coefficient is equal to 1.

Detailed explanation-4: -The elasticity of demand at any given point is equal to the proportional change in quantity demanded associated with a given proportional change in price.

Detailed explanation-5: -Demand can be classified as elastic, inelastic or unitary: Elastic demand: Occurs when a minor price change has a significant effect on demand. Inelastic demand: Occurs when a minor price change does not have a significant effect on demand. Unitary elastic demand: Occurs when price and demand change at the same rate.