Show Recommended textbook solutions Krugman's Economics for AP2nd EditionDavid Anderson, Margaret Ray 1,042 solutions Principles of Economics8th EditionN. Gregory Mankiw 1,333 solutions Principles of Microeconomics7th EditionN. Gregory Mankiw 881 solutions Principles of Microeconomics1st EditionOpenStax, Steven Greenlaw, Timothy Taylor 713 solutions What happens when price elasticity of demand is 1?If the number is equal to 1, elasticity of demand is unitary. In other words, quantity changes at the same rate as price.
What does it mean if a good has a price elasticity equal to 1?If a good's price elasticity is 0 (no amount of price change produces a change in demand), it is perfectly inelastic. If price elasticity is exactly 1 (price change leads to an equal percentage change in demand), it is known as unitary elasticity. The availability of a substitute for a product affects its elasticity.
What is price elasticity of demand if a 2% increase in price results in a 6 decrease in quantity demanded?Suppose that a 2% increase in price results in a 6% decrease in quantity demanded. Own-price elasticity of demand is equal to: a) 1/3.
When the price elasticity is greater than 1 the demand is elastic?The price elasticity of demand is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the quotient is greater than or equal to one, the demand is considered to be elastic. If the value is less than one, demand is considered inelastic.
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If the price elasticity of demand for a good is 1, then a 3 percent decrease in price results in a
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