When the price of scooters drops by 5 percent,the quantity demanded changes by 20 percent.We know that the price elasticity of demand for scooters is
A) perfectly inelastic.
B) inelastic.
C) unitary elastic.
D) elastic.
E) perfectly elastic.

Question

Quizplus · Accepted Answer

The fact that a 5% decrease in price results in a 20% increase in quantity demanded indicates that the demand for scooters is sensitive to changes in price, meaning it is elastic.

When the Price of Scooters Drops by 5 Percent,the Quantity