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

Answer:

True

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.

Answer 2

Answer:

The correct answer is A) True.                                              

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.

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