If apples have an own price elasticity of −1.2 we know the demand is:
A) unitary.
B) indeterminate.
C) elastic.
D) inelastic.

Name: If apples have an own price elasticity of −1.2 we know the demand is: A) unitary. B) indeterminate. C) elastic. D) inelastic.
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Question

Quizplus · Accepted Answer

Since the own price elasticity of apples is -1.2, which is greater than one, we know that the demand is elastic. This means that a change in price will have a relatively larger change in the quantity demanded of apples.

If Apples Have an Own Price Elasticity of −1