A 4% decline in the price of laser printers causes the quantity demanded to rise by 8%.The demand for laser printers is
A)perfectly elastic.
B)elastic.
C)unit elastic.
D)inelastic.
E)perfectly inelastic.

Question

Quizplus · Accepted Answer

The fact that a 4% decline in price causes a relatively large 8% increase in quantity demanded indicates that the demand for laser printers is relatively elastic, as consumers are very responsive to changes in price.

A 4% Decline in the Price of Laser Printers Causes