A local store noticed that when it increased the price of milk from $2.50 to $3.50 per gallon,it sold 33% less milk.Since everything else remained the same,we would say the
A)demand for milk is perfectly elastic
B)demand for milk is elastic
C)demand for milk is perfectly inelastic
D)demand for milk is unitary elastic
E)law of supply does not apply in this situation

Question

Quizplus · Accepted Answer

The Answer of A local store noticed that when it increased the price of milk from $2.50 to $3.50 per gallon,it sold 33% less milk.Since everything else remained the same,we would say the
A)demand for milk is perfectly elastic
B)demand for milk is elastic
C)demand for milk is perfectly inelastic
D)demand for milk is unitary elastic
E)law of supply does not apply in this situation

A Local Store Noticed That When It Increased the Price