Demand is unit elastic when the absolute value of the price elasticity of demand is:1 pointless than 1.0.equal to 1.greater than 1.

Demand is said to be unit elastic ifa.quantity demanded changes by the same percent as the price.b.quantity demanded changes by a larger percent than the price.c.the demand curve shifts by the same percentage amount as the price.d.quantity demanded does not respond to a change in price.

The price elasticity of demand is defined as the percentage change in the price of that good divided by the percentage change in quantity demanded for that good.Question 1AnswerTrueFalse

Most economists report the elasticity of demand asa.a percentage, since both the numerator and denominator are percentages.b.a negative number, since price and quantity demanded move in opposite directions.c.the absolute value of the actual number.d.a dollar amount, since we are measuring the change in price.

Price Elasticity Of Demand

The price elasticity of demand (absolute value) for apples is 1. Which of the following is true?Group of answer choicesAll of the aboveThe price is responsive to changes in quantity demandedNone of the aboveA change in price results in an equally proportional change in quantity demanded