For the first quarter of the year,the price of the company's most popular e-reader was $129.00.The company sold 750,000 units at this price.For the second quarter,the company decided to reduce the price of the e-reader to $109.00.At this price point,the company sold 1.5 million units indicating that demand for the product is

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The increase in sales volume by 100% (from 750,000 units to 1.5 million units) shows that the price reduction affected demand significantly. Thus, it can be concluded that the demand for the e-reader is elastic, meaning that a change in price leads to a relatively larger change in quantity demanded.

For the First Quarter of the Year,the Price of the Company's