A product has unit elasticity of demand when the price elasticity of demand is A. less...

A product has unit elasticity of demand when the price elasticity of demand is

A. less than 1.

B. equal to 0.

C. equal to 1.

D. greater than 1.

Solutions

Expert Solution

Equal to 1

When percentage change in quantity demanded is equal to percentage change in price, then demand for such a commodity is said to be unitary elastic. In this case price elasticity of demand is equal to 1.

Rahul Sunny answered 1 year ago

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