If the calculated price elasticity of demand between two points is -4, demand is
A) inelastic.
B) elastic.
C) unresponsive to price.
D) unit-elastic.

Name: If the calculated price elasticity of demand between two points is -4, demand is A) inelastic. B) elastic. C) unresponsive to price. D) unit-elastic.
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Question

Quizplus · Accepted Answer

A price elasticity of demand of -4 indicates that a 1% increase in price leads to a 4% decrease in quantity demanded. This level of responsiveness to price indicates elastic demand.

If the Calculated Price Elasticity of Demand Between Two Points