-In the figure above, if the price falls from $8 to $7, demand is
A) income elastic.
B) inelastic.
C) elastic.
D) perfectly elastic.
E) unit elastic.

Question

-In the figure above, if the price falls from $8 to $7, demand is
A) income elastic. 
B) inelastic. 
C) elastic. 
D) perfectly elastic. 
E) unit elastic.

Quizplus · Accepted Answer

When the price falls from $8 to $7 and demand is elastic, it means that the percentage change in quantity demanded is greater than the percentage change in price, indicating a high responsiveness of demand to price changes.

-In the Figure Above, If the Price Falls from $8