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2007-03-01 14:56:18 · 1 answers · asked by scottsboroil 1 in Social Science Economics

1 answers

Generally, you won't find an example of a unitary elastic company, because unitary elasticity is not a phenomena that occurs everywhere on a demand curve. Generally, the left side of a demand curve is elastic, and the right side of the demand curve is inelastic. Somewhere in the middle, the demand curve becomes unitary elastic. Thus, elasticity varies widely depending where on the demand curve you are. As such, a company may operate at the point where they are unitary elastic, but that does not make them inherently unitary elastic companies.

2007-03-02 02:56:41 · answer #1 · answered by theeconomicsguy 5 · 1 0

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