If demand falls by 1 percent when price is increased by 2 percent, then ________.
A) elasticity is -1/2
B) demand is inelastic
C) demand is elastic
D) buyers are not price sensitive
E) A and B
Answer: E
If demand falls by 1 percent when price is increased by 2 percent, then ________.
A) elasticity is -1/2
B) demand is inelastic
C) demand is elastic
D) buyers are not price sensitive
E) A and B
Answer: E