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what elastic demand means?

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Anonymous

12y ago
Updated: 12/20/2022

The term "Unitary elastic" is used when the price elasticity of demand is equal to 1.

For example, change in price from 10 to11 (+10%) causes 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.

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Cedrick Olson

Lvl 10
2y ago

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