[This is part of the series: The Complete Guide To Economics 101.]
What does it mean to say that supply or demand is unit elastic?
When supply or demand is Unit Elastic, it means that quantity supplied or quantity demanded is proportionally sensitive to changes in price.
For example, if there is a 10% increase in the price of shoes, and quantity demanded for shoes decreases by exactly 10%, demand for shoes is said to be “unit elastic.”
This is obviously different than being elastic, or inelastic.