Assume that when the price of rockmelons is $2.50,the demand for rockmelons is unit-elastic,and that the demand curve for rockmelons is linear and downward sloping.If firms lower the price of rockmelons to $2.00,which of the following statements can be made regarding the price elasticity of demand for rockmelons?
A) The demand for rockmelons at $2.00 must be inelastic.
B) We cannot determine whether the demand for rockmelons is elastic or inelastic without knowing what the quantity demanded is at each price.
C) The demand for rockmelons at $2.00 must be elastic.
D) The demand for rockmelons at $2.00 must be unit-elastic.

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The Answer of Assume that when the price of rockmelons is $2.50,the demand for rockmelons is unit-elastic,and that the demand curve for rockmelons is linear and downward sloping.If firms lower the price of rockmelons to $2.00,which of the following statements can be made regarding the price elasticity of demand for rockmelons?
A) The demand for rockmelons at $2.00 must be inelastic.
B) We cannot determine whether the demand for rockmelons is elastic or inelastic without knowing what the quantity demanded is at each price.
C) The demand for rockmelons at $2.00 must be elastic.
D) The demand for rockmelons at $2.00 must be unit-elastic.

Assume That When the Price of Rockmelons Is $2