If the price of a six-pack of Pepsi falls from $4 to $3 and the quantity purchased increases 80 percent,then demand is
A) inelastic.
B) elastic.
C) unit elastic.
D) perfectly inelastic.
E) perfectly elastic.

Question

Quizplus · Accepted Answer

The fact that a decrease in price resulted in a significant increase in quantity demanded indicates that demand is sensitive to changes in price, or elastic.

If the Price of a Six-Pack of Pepsi Falls from $4