-Refer to the above table. For which prices is demand elastic?
A) in a range of prices below $6.50
B) in a range of prices above $6.50
C) in a range of prices between $5 and $10
D) in a range of prices above $9.00

Question

-Refer to the above table. For which prices is demand elastic?
A) in a range of prices below $6.50 
B) in a range of prices above $6.50 
C) in a range of prices between $5 and $10 
D) in a range of prices above $9.00

Quizplus · Accepted Answer

Demand is elastic when a small change in price leads to a large change in the quantity demanded. This typically occurs when there are close substitutes available, or the good is not a necessity, and consumers can easily adjust their consumption in response to price changes. Without the specific table data, a general principle is that demand tends to be more elastic at higher price ranges because consumers start to consider alternatives or reducing consumption as prices rise. Thus, in a range of prices above $6.50, demand is more likely to be elastic as consumers become more sensitive to price changes.

-Refer to the Above Table