Demand is said to be unit elastic ifa.quantity demanded changes by the same percent as the price.b.quantity demanded changes by a larger percent than the price.c.the demand curve shifts by the same percentage amount as the price.d.quantity demanded does not respond to a change in price.

For instance, if the price of a generic brand of cereal increases by 10%, and the quantity demanded decreases by exactly 10%, then the demand is unit elastic. This implies that consumers are adjusting their purchases precisely in response to price changes.

The price elasticity of demand is defined as the percentage change in the price of that good divided by the percentage change in quantity demanded for that good.Question 1AnswerTrueFalse

What does the term elastic demand mean?Multiple ChoiceQuantities demanded which are not very responsive to a change in price.The responsiveness of quantity demanded to a change in price.An elasticity coefficient which is equal to one.Quantities demanded which are quite responsive to a change in price.The responsiveness of price to a change in quantity demanded.

If the quantity demanded of a good is sensitive to a change in the price of that good, demand is said to be elastic.Question 5AnswerTrueFalse

What term is used to describe quantities demanded that do not change much in response to a change in price?Multiple ChoiceInelastic demand.Elastic demand.Unitary elasticity.Price elasticity of demand.The elasticity coefficient.