If the price elasticity of demand within the price range $1 and $1.25 for carrots is 0.79 and for radishes is 1.6, then, within that price range
A) carrots are more price elastic than radishes
B) radishes are more price elastic than carrots
C) carrots and radishes must be substitute goods
D) carrots and radishes must be complementary goods
E) both carrots and radishes are price elastic

Question

Quizplus · Accepted Answer

The price elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good. A higher elasticity (greater than 1) indicates that the good is more responsive to price changes, making radishes (1.6) more price elastic than carrots (0.79).

If the Price Elasticity of Demand Within the Price Range