Respuesta :
Answer:
a 1% decrease in price
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded
Unit elastic demand = percentage change in quantity demanded / percentage change in price = 1
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
It follows that if price increases by 1%, quantity demanded would fall by 1% since demand is unit elastic
