What does unitary elastic demand mean?

Question

The demand is inelastic at a low price but becomes elastic as the price rises.

The elasticity of demand is mathematically determined.

The percentage change in quantity demanded is equal to the percentage change in price.

The elasticity of demand is different at each unit on the price range

Answer 1

Unitary elastic demand refers to a specific condition of demand elasticity where the percentage change in quantity demanded is equal to the percentage change in price. This means that if the price of a good or service increases by a certain percentage, the quantity demanded will decrease by the same percentage, and vice versa.

So, the correct statement is:

The percentage change in quantity demanded is equal to the percentage change in price.