Ask Question
BusinessBusiness
1 March, 23:23

If a product has a unit elastic demand and the price of the product is increased by 10% what do we know about the quantity demanded?

+5
Answers (1)
  1. 1 March, 23:50
    0
    The quantity demanded is likely to fall by 10%.

    Explanation:

    The elasticity of demand shows the change in quantity demanded due to change in the price of the commodity.

    Unitary elastic demand means that the elasticity of demand is equal to 1. It means that a proportionate change in price will lead to equally proportionate change in price.

    So, if it is a normal good a 10% increase in price will cause the quantity demanded to fall by 10%.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If a product has a unit elastic demand and the price of the product is increased by 10% what do we know about the quantity demanded? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Describe the meaning of venture opportunity screening.
Answers (1)
Jorge, a forklift truck operator for the retail chain Hanes Ridge, was injured when the forklift he was operating toppled over. The forklift truck was designed and manufactured by Ionic Machines, Inc.
Answers (1)
Employee engagement refers to being psychologically involved in, connected to, and committed to getting one's job done. Engaged employees often will do their jobs as if they own the company. A. TrueB. False
Answers (1)
Albertson's is a retail chain that sells groceries. It has stores in 31 western, northwestern, mid-western and southern states. It is most likely to use national advertising to reach its target market. True or false?
Answers (1)
Bondholders of Balm Co. converted their bonds into 90,000 shares of $5 par value common stock. In Balm's accounting records, the bonds had a par value of $775,000 and unamortized discount of $23,000 at the time of conversion.
Answers (1)
New Questions in Business
Select three situations when an agency can perform a warrantless search. a. highly regulated industries b. personal services c. exporting businesses d. emergency situations e. certain types of hazardous operations f. internet businesse
Answers (1)
Which of the following payroll deductions is required by law?
Answers (1)
What is the most difficult unit of the 1040EZ tax form to fill out? Why?
Answers (1)
If you purchase or obtain a vehicle from someone else, you are responsible for transferring ownership of the vehicle to your name with the dmv within how many days of the purchase?
Answers (1)
What law created the federal reserve system? Sherman Antitrust Act Social Security Act Appropriations Act Federal Reserve Act
Answers (1)
Home » Business » If a product has a unit elastic demand and the price of the product is increased by 10% what do we know about the quantity demanded?
Sign Up Forgot Password?