What elasticity value represents unit elasticity?

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Multiple Choice

What elasticity value represents unit elasticity?

Explanation:
Elasticity shows how responsive quantity is to price. Unit elasticity means the percentage change in quantity equals the percentage change in price, so the elasticity value is -1 in the usual price elasticity of demand convention (the negative sign reflects the opposite directions of price and quantity). For example, a 5% drop in price leads to a 5% increase in quantity demanded, giving PED = -5% / 5% = -1. Values with smaller magnitude, like -0.5, indicate inelastic demand; zero means no response; larger magnitude, like -2, indicates elastic demand.

Elasticity shows how responsive quantity is to price. Unit elasticity means the percentage change in quantity equals the percentage change in price, so the elasticity value is -1 in the usual price elasticity of demand convention (the negative sign reflects the opposite directions of price and quantity). For example, a 5% drop in price leads to a 5% increase in quantity demanded, giving PED = -5% / 5% = -1. Values with smaller magnitude, like -0.5, indicate inelastic demand; zero means no response; larger magnitude, like -2, indicates elastic demand.

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