Match the statements in column I with the correct statement in column II
| i. | Elastic demand | a. | e>1 |
| ii. | Unitary elastic demand | b. | e<1 |
| iii. | Inelastic demand | c. | e=1 |
Answer & explanation
Correct answer: option 1
The correct answer is option 1: i-a, ii-c, iii-b
Demand is unitary elastic when its value is 1.
It is inelastic when it is less than 1 and
Elastic when greater than 1.