Glossary · Micro · Elasticity

Unit elastic demand

Demand where a given percentage change in price produces exactly the same percentage change in quantity, so PED equals 1. At this point total revenue is at its maximum.

Also called: unitary elasticity

Taught in: Elastic vs Inelastic — and How to Calculate

Related terms

Price elasticity of demand (PED)Total revenue test

More from elasticity

Cross-price elasticity of demand (XED)Determinants of PEDDeterminants of PESElastic demandIncome elasticity of demand (YED)Inelastic demandLuxury goodMidpoint formula

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