Asked by
Maria Gonzalez
on Oct 26, 2024
Verified
If a 20% price increase generates a 20% decrease in quantity demanded,then this is a(n) _____ response.
A) inelastic
B) elastic
C) unit-elastic
D) perfectly elastic
Unit-elastic
A demand or supply whose price elasticity is equal to 1, indicating that the percentage change in quantity demanded or supplied is equal to the percentage change in price.
- Differentiate the characteristics of elastic, inelastic, and unit-elastic demand.
Verified Answer
KH
Learning Objectives
- Differentiate the characteristics of elastic, inelastic, and unit-elastic demand.