question archive Assuming elasticity is reported in absolute value, a unit elastic good: A
Assuming elasticity is reported in absolute value, a unit elastic good: A
Subject:EconomicsPrice:2.88 Bought3
Assuming elasticity is reported in absolute value, a unit elastic good:
A. has a measured elasticity of greater than zero.
B. has a measured elasticity of greater than one.
C. has a measured elasticity of less than one.
D. has a measured elasticity of exactly one.
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- The correct answer choice is: D. has a measured elasticity of exactly one.
The price elasticity of demand is the ratio of the percentage change in the quantity demanded to the percentage change in the price. When a good has a unitary elastic demand, it means that a change in its price causes the same amount of change in the quantity demanded.
