Question

When is elasticity of demand called Unitary?

Answer 1

$\huge{Elasticity\ of \ demand}$

$\textit{Elasticity of demand refers to the percentage change in demand\\for a commodity with respect to percentage change in any of the factors \\ affecting demand for the commodity.}$

$\begin{tabular}{c| l }Type & Description\\ \cline{1-2}Perfectly \ Elastic & Infinite \ demand \ at \ same \ price \\Perfectly \ inelastic & Same \ demand \ at \ all \ prices \\Highly \ Elastic & \% \triangle in Demand > \% \triangle in Price \\ Less \ Elastic & \% \triangle in Demand < \% \triangle in Price \\ Unitary \ Elastic & \% \triangle in Demand = \% \triangle in Price \end{tabular}$

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$\begin{tabular}{c| l} Type & Value \\ \cline {1-2} Perfectly \ Elastic & E_{d} = \infty \\ Perfectly \ Ineastic & E_{d} = 0 \\ Highly \ Elastic & E_{d} \textgreater 1 \\ Less \ Elastic & E_{d} \textless 1 \\Unitary \ Elastic & E_{d} = 1 \end{tabular}$

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$\texttt{Unitary Elastic Demand}$

When percentage change in the quantity demanded is equal to percentage change in price, then demand for such commodity is said to be unitary.

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