Note that widgets and pidgets are imaginary products.
In the country of Burbia, the demand and supply of widgets are given by the functions
where Qd is the quantity demanded per month, Qs is the quantity supplied per month and P is the price per widget in dollars ($).
Outline the meaning of the term unit elastic demand.
Level
Marks
0
The work does not meet a standard described by the descriptors below.
1
Vague understanding.
The idea that the change in demand is equal to the change in price or there is no change in revenue when the price changes or that it shows when revenue is at its maximum.
2
Clear understanding.
A change in the price of a product results in a proportionate (equal percentage) change in the quantity demanded.