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Question
With the help of a diagram, explain the Unitary elastic demand curve.
Answer in Brief
Diagram
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Solution
Unitary elastic demand curve:
When the extension or contraction in quantity demanded is equally proportional to price changes, it is a case of unitary elastic demand. The demand for commodities of comforts, e.g., electric fan, umbrella, raincoat, torch, etc., belong to this class.
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Chapter 2: Elasticity of Demand - QUESTIONS [Page 44]
