Question

When elasticity of demand is equal to one and the change in the quantity demanded and the change in price are exactly proportional. This type of elasticity is described as ________.

Answer 1

Answer:

The correct answer is: unitary elasticity.

Explanation:

Unitary elasticity takes place when the change in quantity demanded of a good or service represents a proportional change in price. Under this scenario, the elasticity -measure of how prone is to react a good or service in price due to change in other factors, ceteris paribus- equals to 1.