ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Elastic
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Unit Elastic
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Inelastic
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Statistics
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Detailed explanation-1: -When percentage change in quantity demanded is equal to the percentage change in price, the elasticity of demand is unitary elastic.
Detailed explanation-2: -If the percentage change in quantity demanded is greater than the percentage change in price, demand is said to be price elastic, or very responsive to price changes.
Detailed explanation-3: -Unitary elasticity means that a given percentage change in price leads to an equal percentage change in quantity demanded or supplied.
Detailed explanation-4: -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-5: -If price elasticity is exactly 1 (price change leads to an equal percentage change in demand), it is known as unitary elasticity.