Unit elastic demand is a type of elasticity when there is a change in the price say from 5 $ to 6 $ , there will be a change in quantity demanded from 6 to 5 . That is when the price changes by one unit, the quantity demanded also changes by 1 unit. revenue remains unchanged.
Demand is unit elastic.
If ep = dQ/dP.P/Q = infinity, the demand is perfectly elastic.
Perfectly elastic demand. Relative elastic demand. Unit elasticity of demand. Relative inelastic demand. Perfectly inelastic demand.
producer
The definition of perfectly elastic supply is a supply that can change along with the demand. This means if paper for example is not demanded in large quantities and then all of the sudden is there will be enough paper to supply the demand.
This is unit elastic demand. Elasticity measures how price responds to a given variable (in this case demand). If prices and demand move at the same rate you have unit elastic demand. Mathematically it means the ratio of price change to demand change is 1.
Unit elastic
Unit elastic - Describes a supply or demand curve which is perfectly responsive to changes in price. That is, the quantity supplied or demanded changes according to the same percentage as the change in price. A curve with an elasticity of 1 is unit elastic.
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if a price cut decreases total revenue, demand is elastic. if a price cut decreases total revenue, demand is inelastic. if a price cut leaves total revenue unchanged, demand is unit elastic.
Perfectly inelastic demand, perfectly elastic demand, elastic demand, inelastic demand etc.
Unit Elastic. The quantity demanded changes exactly 1% with every 1% change in price.