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Identify and explain the following concept: When the price of apples falls by 10%, Vinay increases his demand for apples by 10%. - Economics

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Question

Identify and explain the following concept:

When the price of apples falls by 10%, Vinay increases his demand for apples by 10%.

Explain
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Solution

Identified concept: Unitary elastic demand.

Explanation:

Demand is said to be unitary elastic when a corresponding change in a commodity's price results in an identically proportionate change in the quantity demanded.

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