If the quantity of dental services demanded increases by 10 percent when the price of dental services falls by 10 percent, is the demand for dental services inelastic clastic, or unit elastic? The demand for dental services is __ A. inelastic B. price unit elastic when the price falls but price elastic if the price rises C. elastic D. unit elastic

## Step 1<br />The problem involves the concept of price elasticity of demand, which is a measure of how much the quantity demanded of a good responds to a change in its price. The formula for price elasticity of demand is:<br /><br />### **Elasticity = \(\frac{\% \text{ change in quantity demanded}}{\% \text{ change in price}}\)**<br /><br />## Step 2<br />In this problem, the percentage change in quantity demanded is 10% and the percentage change in price is also 10%. Substituting these values into the formula, we get:<br /><br />### **Elasticity = \(\frac{10\%}{10\%} = 1\)**<br /><br />## Step 3<br />The elasticity value is 1, which indicates that the demand is unit elastic. This means that the percentage change in quantity demanded is exactly the same as the percentage change in price.