If the price elasticity of demand is found to be -6, then demand is:
A) price inelastic.
B) price elastic.
C) unit price elastic.
D) horizontal.

Name: If the price elasticity of demand is found to be -6, then demand is: A) price inelastic. B) price elastic. C) unit price elastic. D) horizontal.
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Question

Quizplus · Accepted Answer

A price elasticity of demand of -6 means that a 1% change in price causes a 6% change in quantity demanded, indicating a high level of responsiveness to changes in price. Thus, the demand is price elastic.

If the Price Elasticity of Demand Is Found to Be