Which of the following economic concepts describes the responsiveness of consumer demand to a price change, where a percentage change in price leads to an equal percentage change in quantity demanded?

💡 Solution & Explanation

Unitary elastic demand describes a market condition where the percentage change in quantity demanded equals the percentage change in price, yielding an elasticity coefficient of exactly one. Unlike perfectly elastic or inelastic curves where demand responds infinitely or remains completely unresponsive to price shifts, unitary elasticity represents proportional consumer reactions.