When the price of a pound of apples is $1.00, 7500 pounds of apples are demanded. When the price of a pound of apples decreases to $0.80, 10,000 pounds of apples are demanded. In this price range the demand for apples is
A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly elastic.

Question

Quizplus · Accepted Answer

The decrease in price from $1.00 to $0.80 led to an increase in quantity demanded from 7500 to 10,000 pounds, which is a relatively large change in quantity demanded compared to the change in price. Therefore, the demand for apples is elastic in this price range.

When the Price of a Pound of Apples Is $1