A unitary elastic demand:
a) means that the ratio of a change in quantity demanded to a change in price is equal to 1.
b) means that the ratio of a percentage change in quantity demanded to a percentage change in price is equal to 1.
c) means that the ratio of a change in price to a change in quantity demanded is equal to 1.
d) is illustrated by a vertical demand curve.
e) is illustrated by a horizontal demand curve.
Answer: b) means that the ratio of a percentage change in quantity demanded to a percentage change in price is equal to 1.
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