When the price of chai tea lattés is $5,Maxine buys 20 per month.When the price is $4,she buys 30 per month.Maxine's demand for chai tea lattés is
A)elastic,and her demand curve would be relatively flat.
B)elastic,and her demand curve would be relatively steep.
C)inelastic,and her demand curve would be relatively flat.
D)inelastic,and her demand curve would be relatively steep.

Question

Quizplus · Accepted Answer

Maxine's demand is elastic because a decrease in price from $5 to $4 leads to a significant increase in quantity demanded from 20 to 30. An elastic demand curve is relatively flat.

When the Price of Chai Tea Lattés Is $5,Maxine Buys