Question

Unit Elastic is elasticity where a change in the independent variable (usually price) generates a proportional change of the dependent variable (quantity demanded or supplied).

Question 11 options:
True
False

Answer 1

The correct answer is A) True.

Step-by-step explanation:

Unit elastic demand is an economic theory that assumes a change in price will cause an equal proportional change in quantity demanded.

In other words, it describes a demand or supply that is perfectly responsive to price changes by the same percentage.

Cheers!

Answer 2

True

Step-by-step explanation:

Elasticity is an economic concept used to explain the variation of the demand of a product given a change in its price. It is assumed that an elastic good or product changes dramatically when prices rise or fall.