At higher prices,the price elasticity of demand is likely to be ________,whereas it is likely to be ________ at lower prices.
A) perfectly elastic; perfectly inelastic
B) elastic; inelastic
C) inelastic; elastic
D) perfectly inelastic; perfectly elastic
E) unitary elastic; elastic

Question

Quizplus · Accepted Answer

At higher prices, consumers are more sensitive to price changes, making the demand more elastic. At lower prices, consumers are less sensitive to price changes, making the demand more inelastic.

At Higher Prices,the Price Elasticity of Demand Is Likely to Be