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14 October, 14:57

If the demand for a steak is unit price elastic, then; Select one: a. the percentage change in quantity demanded is equal to the percentage change in price b. the percentage change in quantity demanded is 1 percent greater than the percentage change in price. c. quantity demanded does not respond to changes in price d. the percentage change in quantity demanded is 100 percent greater than the percentage change in price (in absolute value).

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  1. 14 October, 15:14
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    The correct answer is option a.

    Explanation:

    The price elasticity of demand shows the responsiveness of quantity demanded to change in price. It is measured by the ratio of proportionate change in quantity demanded and proportionate change in price.

    Unit price elastic means that the price elasticity of the good is 1. This implies that the percentage change in quantity demanded must be equal to the percentage change in price.
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