The price of an apple falls by 5 percent and quantity of apples demanded increases by 6 percent.The demand for apples is
A)perfectly elastic.
B)unit elastic.
C)elastic.
D)perfectly inelastic.
E)inelastic.

Question

Quizplus · Accepted Answer

The decrease in price leads to an increase in quantity demanded, indicating that the demand is responsive to price changes. The percent change in quantity demanded (6%) is greater than the percent change in price (5%), indicating that demand is elastic.

The Price of an Apple Falls by 5 Percent and Quantity