If the demand for digital cameras is price elastic
A) they will have a high price.
B) they are probably in demand.
C) an increase in price will not measurably reduce sales.
D) a decrease in price increases the total amount spent on them.
E) the elasticity coefficient equals 1.

Question

Quizplus · Accepted Answer

When demand is price elastic, a decrease in price leads to a proportionally larger increase in the quantity demanded, which can increase the total revenue or amount spent on the product.

If the Demand for Digital Cameras Is Price Elastic