When minced beef is $3 per kilo, Ms. Rush buys 6 kilos. When minced beef is $2 per kilo, Ms. Rush buys 10 kilo. Describe Ms. Rush's demand between these two prices.
A) Unit elastic
B) Elastic
C) Inelastic
D) Perfectly elastic
E) Perfectly inelastic

Question

Quizplus · Accepted Answer

Ms. Rush's demand is elastic because her quantity demanded significantly changes with changes in the price of minced beef. When the price drops by $1 per kilo, Ms. Rush increases her quantity demanded from 6 kilos to 10 kilos, which is a 67% increase in quantity. This shows that her demand is responsive to changes in the price, making it elastic.

When Minced Beef Is $3 Per Kilo, Ms