Dosta Mattress Company manufactures and sells mattresses to retailers who then put their own store brand names on the product.At a price of $100,it sold 100 mattresses.It dropped its price to $60 and sold 175 mattresses.Regarding elasticity,demand for the mattresses is:
A) elastic
B) inelastic
C) unitary
D) symmetrical
E) asymmetrical

Question

Quizplus · Accepted Answer

The decrease in price from $100 to $60 led to an increase in quantity demanded from 100 to 175, which shows a relatively large response to the change in price. This indicates that the demand for the mattresses is elastic.

Dosta Mattress Company Manufactures and Sells Mattresses to Retailers Who