If the price of Pepsi-Cola increases from 50 cents to 60 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then the demand for Pepsi-Cola is:
A)unit elastic.
B)perfectly elastic.
C)perfectly inelastic.
D)elastic.
E)inelastic.

Question

If the price of Pepsi-Cola increases from 50 cents to 60 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then the demand for Pepsi-Cola is:​
A)unit elastic.
B)perfectly elastic.
C)perfectly inelastic.
D)elastic.
E)inelastic.

Quizplus · Accepted Answer

The decrease in the quantity demanded by 50% (from 100 cans to 50 cans) indicates that the demand for Pepsi-Cola is responsive to changes in price, making it elastic.

If the Price of Pepsi-Cola Increases from 50 Cents to 60