Question

In Market A, a 4 percent increase in price reduces the quantity demanded by 2 percent....

In Market A, a 4 percent increase in price reduces the quantity demanded by 2 percent. In Market B, a 3 percent increase in price reduces the quantity demanded by 4 percent. The demand in Market A and Market B are considered______ and _______, respectively.

a) unit price-elastic; perfectly price-inelastic.

b) price-elastic; price-inelastic.

c) perfectly price-elastic; unit price-elastic.

d) price-inelastic; price-elastic.

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OPTION D

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