Question

Define Unitary Elastic Demand

Answer 1

Unitary elastic demand is define as

A situation that occurs when the price elasticity of demand is equal to negative one (-1). For a business, when a product exhibits unitary demand this means that a given percent shift in the price of the product results in an equal but opposite percent change in the amount of product demanded. Hence, a one percent change in price yields a one percent decline in the amount of product demanded.

Answer 2

Unitary Elastic Demand is that proportionate or equal change in the demand and the price of a given quantity which occurs over a given period of time. Basically, in Unitary elastic Demand there is equal change in the price of the commodity and the demand of the commodity.

The equal change in the price and the demand of the commodity is represented by a rectangular hyperbola on the graph.