Chapter 6, Problem 2QP

For each of the following, identify where demand is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic:

1. a. Price rises by 10 percent, and quantity demanded falls by 2 percent.
2. b. Price falls by 5 percent, and quantity demanded rises by 4 percent.
3. c. Price falls by 6 percent, and quantity demanded does not change.
4. d. Price rises by 2 percent, and quantity demanded falls by 1 percent.