What is the significance of a unitary elastic demand curve
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It's the value of the elasticity at which a small change in the price of the good or service is exactly offset by a change in the quantity demanded in the opposite direction, leaving the amount spent on the item unchanged. If the elasticity is less than 1, an increase in price leads to a less-than-proportional decrease in quantity demanded, causing total spending on the item to increase, and vice versa for an elasticity greater than 1.
Hope this answer will help you..《《
It's the value of the elasticity at which a small change in the price of the good or service is exactly offset by a change in the quantity demanded in the opposite direction, leaving the amount spent on the item unchanged. If the elasticity is less than 1, an increase in price leads to a less-than-proportional decrease in quantity demanded, causing total spending on the item to increase, and vice versa for an elasticity greater than 1.
Hope this answer will help you..《《
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