Question

If the elasticity of demand is 1 , then the demand is ……………….​

Answer 1

Answer:

if elasticity of demand n=1 then demand is

Answer 2

Answer:

The answer is unitary. If the η (elasticity of demand) is equal to 1, then the demand is unitary.

Step-by-step explanation:

The elasticity of demand, an important variation, is a concept of demand. Demand can be unitary, elastic, or inelastic. The change in quantity demanded due to a change in price is large or small and known as elastic or inelastic demand, respectively.

The formula for calculating the elasticity of demand (η) is $\frac{(Q1 - Q2) / (Q1 + Q2) }{(P1 - P2) / (P1 + P2)}$

The values of η can be greater than 1, less than 1, and equals to 1 and it means that the demand is elastic (quantity changes faster than price), inelastic (quantity changes slower than price), and unitary respectively (quantity changes at the same rate as price).

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