Question

What does unitary elastic demand mean?

(a)The elasticity of demand is mathematically determined.
(b)The demand is inelastic at a low price but becomes elastic as the price rises.
(c)The elasticity of demand is different at each unit on the price range.
(d)The percentage change in quantity demanded is equal to the percentage change in price.

Answer 1

Hey there!

What does unitary elastic demand mean?

Unitary elastic demand is the percentage in quantity demanded is equal to the percentage change in price. This means your answer is option D.

Hope this helps
Have a great day (:

Answer 2

The answer is d. Unitary elastic demand means that elastic coefficient=1. In other words, a change in the price of a good causes an equal change in the quantity of demand. The price-demand graph should be an inverse function, where the product of x, y coordinates at any point is constant.