The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-An economic survey observed that a 20 percent cut in the price of a certain line of women's clothing, almost doubled the quantity demanded of the clothing. This led economists to conclude that the demand for this line of clothing is _____.
A)highly elastic
B)highly inelastic
C)unit-elastic
D)perfectly elastic
E)perfectly inelastic

Question

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1
 
-An economic survey observed that a 20 percent cut in the price of a certain line of women's clothing, almost doubled the quantity demanded of the clothing. This led economists to conclude that the demand for this line of clothing is _____.
A)highly elastic 
B)highly inelastic 
C)unit-elastic 
D)perfectly elastic 
E)perfectly inelastic

Quizplus · Accepted Answer

A 20 percent cut in price led to almost double the quantity demanded, indicating that the percentage change in quantity demanded was greater than the percentage change in price. This indicates that the demand for this line of clothing is highly elastic.

The Figure Given Below Shows the Demand Curves for Five