question archive Suppose 200 DVDs are rented when the price is $4
Suppose 200 DVDs are rented when the price is $4
Subject:EconomicsPrice:2.88 Bought3
Suppose 200 DVDs are rented when the price is $4. If the price drops by $.80, the number of DVDs rented increases to 220. Which of the following statements about the price elasticity of demand is true?
a. The elasticity of demand is equal to 5.
b. Demand is elastic.
c. Demand is inelastic.
d. Demand is unit elastic.
e. The elasticity of demand is equal to 2.
