Unit Price – Meaning, Formula, Solved Examples, and FAQs

Unit Price Meaning

Unit price is the price of a single unit of a product or service. It is also known as price per unit or cost per unit. Unit price can be calculated by dividing the cost of a product or service by the number of units sold. It is used to compare the prices of different products and services. Unit Price – Meaning Formula Solved Examples and FAQs.

Unit Price Formula

The unit price is the price per unit of a good or service. The unit price is calculated by dividing the total price by the number of units. For example, if a product costs $10 and there are 10 units in the package, the unit price is $1 per unit.

Electricity Unit Price

Electricity unit price is the price of one kilowatt-hour (kWh) of electricity. The price of electricity can vary depending on your location and the time of day.

Unit Cost

The cost of a product is the amount of money that is paid to produce and sell the product. The cost of a product is usually determined by the amount of money that is paid for the materials that are used to produce the product, the amount of money that is paid to the workers who produce the product, and the amount of money that is paid to the company that sells the product.

The cost of a product can also be determined by the amount of money that is paid for the taxes that are associated with the product.

Unit Cost Formula

The cost of an object can be found by multiplying the number of objects by the cost per object.

Variable Cost

Variable cost is the cost of a good or service that changes in direct proportion to the amount of that good or service that is produced or sold. For example, the cost of the raw materials that are used to produce a good will be a variable cost, as will the wages of the employees who produce the good.

Variable Cost Formula

The variable cost formula is the formula used to calculate the variable cost of a product or service. The variable cost formula is:

Variable Cost = Marginal Cost × Quantity

Where Marginal Cost is the increase in total cost associated with producing one more unit of a good or service, and Quantity is the number of units produced.

Variable Cost Per Unit

= Variable Cost

Quantity

The variable cost per unit is the cost incurred for each unit of a particular product or service. This cost can vary depending on how much of the product or service is produced or consumed.

Fixed Cost

Fixed cost is a cost that does not change with the amount of output produced. For example, rent is a fixed cost because it does not change no matter how many products or services a company produces.

Fixed Cost per Unit = \[\frac{\text{Total Fixed Cost}}{\text{Total Number Unit Made}}\]

Variable Cost per Unit = \[\frac{\text{Total Variable Cost}}{\text{Total Number Unit Made}}\]

What is Unit Elastic?

Unit elasticity is a measure of how responsive one unit of a good or service is to a change in price. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price. A unit elastic good or service has a coefficient of one, meaning that the percentage change in quantity demanded is equal to the percentage change in price.

Unit Elastic Demand

Elastic demand is a term used in economics to describe a type of demand that responds significantly to changes in price.

If the price of a good or service rises, the quantity demanded falls (and vice versa). This is because people can easily switch to a different good or service if the price of the original good or service rises.

Elastic demand is said to be “responsive” to changes in price.

In general, goods and services that are used for everyday purposes (such as food, clothing, and gasoline) have elastic demand, while goods and services that are used for less common purposes (such as yachts and diamond rings) have inelastic demand.

Solved Examples

Example 1: Find the value of sin(−π/2)

sin(−π/2) = −1

Example 2: Find the value of sin(π/4)

sin(π/4) = ±1/2