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Chapter 20 - Demand And Supply: Elasticities And ApplicationsChapter 20 Key Terms McConnell and Brue 14th Edition
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Help Desk | Legal Policies and Info | Order Info | What's New | Get Involved Copyright ©1998 The McGraw-Hill Companies. All rights reserved.Any use is subject to the Terms of Use and Privacy Policy. McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies. For further information about this site contact . 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?If the elasticity is equal to one, it means that the change in the quantity demanded is exactly equal to the change in price, so the demand response is exactly proportional to the change in price. We call this unitary elasticity, because unitary means one.
When the change in quantity demanded is greater than the price in price elasticity of demand is ?If the percentage change in quantity demanded is greater than the percentage change in price, the elasticity is greater than one and the good is classified as elastic, meaning the percentage change in quantity demanded is relatively responsive to the percentage change in price.
When the percent change in quantity is equal to the percent change in price demand?When percentage change in quantity equals percentage change in price, magnitude of elasticity of demand is equal to 1. This is the situation of unit elasticity.
What is the meaning of unitary elastic?What is Unit Elastic? In economics, unit elastic (also known as unitary elastic) is a term that describes a situation in which a change in one variable results in an equally proportional change in another variable.
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