If the elasticity of demand η = 1, then demand is ______. - Mathematics and Statistics

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If the elasticity of demand η = 1, then demand is ______.

Options

  • constant

  • inelastic

  • unitary elastic

  • elastic

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Solution

If the elasticity of the demand η = 1, then demand is unitary elastic.

Explanation:

0 < η < 1 – inelastic

η > 1 – elastic

η = 1 – unitary elastic

Concept: Application of Derivatives to Economics
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Chapter 1.4: Applications of Derivatives - Q.1

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