If at a price of $50, Ghani sells 20 hand-made leather cell-phone covers but at a price of $60, zero units are sold.Based on this information, the demand for his cell-phone covers is
A)elastic or perfectly inelastic.
B)elastic or perfectly elastic.
C)unit elastic.
D)perfectly inelastic.

Question

Quizplus · Accepted Answer

The demand is perfectly elastic because a small increase in price from $50 to $60 results in the quantity demanded dropping from 20 to zero.

If at a Price of $50, Ghani Sells 20 Hand-Made