Table 4.3
-Refer to Table 4.3. After calculating the price elasticity of demand for computers, we can say the demand for computers is
A) upward sloping.
B) inelastic.
C) unit elastic.
D) elastic.

Question

Table 4.3
-Refer to Table 4.3. After calculating the price elasticity of demand for computers, we can say the demand for computers is
A) upward sloping. 
B) inelastic. 
C) unit elastic. 
D) elastic.

Quizplus · Accepted Answer

The price elasticity of demand for computers is -2.5, which is greater than 1, indicating that the demand for computers is elastic. This means that a change in price will result in a more than proportional change in quantity demanded.

Table 4.3 -Refer to Table 4.3. After Calculating the Price Elasticity of Elasticity