FPGEE for National Association of Boards of Pharmacy (NABP) Practice Exam 2026 - Free NABP Practice Questions and Study Guide

Unit elasticity in the context of pharmacy economics refers to a situation where a percentage change in price leads to an equal percentage change in quantity demanded. This means that while the price of a pharmaceutical product changes, the total revenue generated from sales remains constant because the increase or decrease in price is offset by the corresponding change in quantity sold.

When considering the correct answer regarding revenue changes equaling price changes, it highlights that with unit elastic demand, any increase or decrease in price does not affect the overall revenue. For instance, if the price of a medication increases by 10%, the quantity demanded will decrease by 10%, resulting in no overall change in revenue. This concept is crucial for pharmacy managers as they strategize pricing for medications, considering how these dynamics can impact overall profitability.

The other options do not accurately capture the nature of unit elasticity. For example, if price changes do not affect the quantity sold, this would signify perfectly inelastic demand, which differs from unit elasticity. Similarly, the assertion that revenue increases at a higher price point would apply to inelastic demand, where higher prices lead to greater revenue due to lower sensitivity in quantity demanded. Finally, a price decrease leading to zero change in revenue suggests a scenario of perfectly inelastic demand rather than unit