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Define the term ‘unit elasticity’? How is this different to what is meant by ‘elastic demand’?...

Define the term ‘unit elasticity’? How is this different to what is meant by ‘elastic demand’?

use the microeconomics knowledge to answer, please. may need to use the diagram.

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Answer #1

For unit elastic demand, the value of price elasticity of demand is equal to 1

It means the proportion change in the price is same as the proportion change in the quantity demanded

It is represented on price and quantity demanded curve

Elastic demand in simple terms is that type of demand in which even there is a small change in price causes heavy change in the quantity demanded

The value of price elasticity of demand is greater than 1 for elastic demand

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