Answer to Question #35267 in Microeconomics for Katty
change in quantity from 10 to 9 (-10%). 10%/10%=1.
Unitary Elastic for the Elasticity of Demand is a proportionate change in price and quantity. This means that the reaction of consumers to price changes
is stable and not dramatic like elastic products, and not small or no changes
in quantity like inelastic products. It's in the middle of these two. As price
goes up or down for unitary products, the total revenue from it stays
relatively the same.
Need a fast expert's response?Submit order
and get a quick answer at the best price
for any assignment or question with DETAILED EXPLANATIONS!