If the price elasticity of demand is found to be 6,then demand is:
A)price-inelastic.
B)price-elastic.
C)price unit-elastic.
D)horizontal.

Name: If the price elasticity of demand is found to be 6,then demand is: A)price-inelastic. B)price-elastic. C)price unit-elastic. D)horizontal.
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Question

Quizplus · Accepted Answer

A price elasticity of demand of 6 indicates that a 1% increase in price leads to a 6% decrease in quantity demanded. This indicates a highly responsive demand, which means that demand is price-elastic.

If the Price Elasticity of Demand Is Found to Be