What is unit-elastic?
Understand the Problem
The question is asking for the definition and explanation of the term 'unit-elastic,' which is used in economics to describe a situation where the total revenue remains unchanged when the price changes. This typically refers to demand or supply where the percentage change in quantity demanded or supplied is exactly equal to the percentage change in price.
Answer
Unit-elastic demand is when the percentage change in quantity demanded is exactly equal to the percentage change in price.
Unit-elastic demand is when the percentage change in quantity demanded is exactly equal to the percentage change in price.
Answer for screen readers
Unit-elastic demand is when the percentage change in quantity demanded is exactly equal to the percentage change in price.
More Information
In economic terms, unit-elasticity signifies a 1% change in price results in a 1% change in quantity demanded or supplied.
Sources
- Investopedia - Unit Elastic - investopedia.com
- Economic Help - Unit Elastic - economicshelp.org
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