When the price of CD players increases 5%,quantity demanded decreases 5%.The price elasticity for CD players is
A)inelastic.
B)unit elastic.
C)elastiC.
D)perfectly inelastic.

Question

Quizplus · Accepted Answer

The price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. Here, both changes are 5%, resulting in an elasticity of 1, which is defined as unit elastic.

When the Price of CD Players Increases 5%,quantity Demanded Decreases