What does it mean if a good has a price elasticity of demand equal to 1?

• A. The good is perfectly elastic, meaning any price change results in an infinite change in quantity demanded.
• B. The good is perfectly inelastic, meaning quantity demanded does not change with price.
• C. The good is unit elastic, meaning the percentage change in quantity demanded is equal to the percentage change in price.
• D. The good is elastic, meaning quantity demanded changes significantly with price.

Answer: (C)