Question

Unit Elastic is elasticity where a change in the independent variable (usually price) generates a proportional change of the dependent variable (quantity demanded or supplied).

Question 13 options:
True
False

Answer 1

The statement is true.

Step-by-step explanation:

Unit elastic is described as the demand or supply curve that is perfectly responsive to the changes in the price. In other words, the demand or the quality supplied will change or vary in accordance with the same percentage as the change in price.

The curve which has elasticity of 1 will be called as unit elastic.