Question

The total outlay on commodity remains constant, even when there is a change in price is occurs in case of:

A Unit elasticity Correct Answer Incorrect Answer
B Perfect elasticity Correct Answer Incorrect Answer
C Unit elasticity Correct Answer Incorrect Answer
D Zero elasticity Correct Answer Incorrect Answer

Solution

Unit elasticity, a supply or demand curve which is perfectly responsive to changes in price. That is, the quantity supplied or demanded changes according to the same percentage as the change in price. 

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