Suppose the price elasticity of demand for bacon double cheeseburgers is 3.67. This means that the demand for cheeseburgers is:
A)elastic.
B)inelastic.
C)unit-elastic.
D)perfectly inelastic.

Question

Quizplus · Accepted Answer

A price elasticity of demand of 3.67 indicates that a 1% increase in price will result in a 3.67% decrease in quantity demanded. This shows that the demand is highly responsive to changes in price, which means it is elastic.

Suppose the Price Elasticity of Demand for Bacon Double Cheeseburgers