Elastic demand
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Suppose that a monopolist must choose between two points in its demand curve: it can sell 100 units for $3 or it can sell 140 for $2. Which of the following is true?
a. The monopolist is facing elastic demand.
b. The monopolist is facing unit elastic demand.
c. The monopolist is facing inelastic demand.
d. The monopolist is facing perfectly elastic demand
e. The elasticity of the demand curve the monopolist faces cannot be determined from the information given.
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This explains the meaning of Elastic demand
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Elastic demand means that relatively small changes in demand price cause relatively larger changes in quantity demanded. Elastic demand means that ...
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