When the price of used cds is $4,Daphne buys five per month.When the price is $3,she buys nine per month.Daphne's demand for used cds 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

Daphne's demand is elastic because there is a large change in the quantity demanded (from 5 to 9) in response to a relatively small change in price (from $4 to $3). Her demand curve would be relatively flat because the percentage change in quantity demanded is greater than the percentage change in price.

When the Price of Used Cds Is $4,Daphne Buys Five