what is Meant by unitary elastic demand??
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When percentage change in the quantity demanded is less than percentage change in price then demand for such commodity is said to be less...
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Unit elastic demand is an economic theory that assumes a change in price will cause an equal proportional change in quantity demanded. Put simply unitary elastic describes a demand or supply that is perfectly responsive to price changes by the same percentage. You can think of it as a unit per unit basis.
Explanation:
Unitary elastic is when percentage change in price of a commodity is equal to the percentage change in quantity demanded of that good… ... For example, if in case of a particular product, if 10% decrease in price leads to 10% increase in demand, such a product is said to have unitary elastic demand.
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