Elastic Chicken
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 50 ROTISSERIE CHICKEN ELASTIC TIES - STRING US $7.00 
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 1000 - ROTISSERIE CHICKEN ELASTIC TIES - STRING US $78.00
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Price elasticity of demand(Multiple choice questions)?
If the quality demand of beef increases by 10% when the price of chicken goes up by 8%, the cross-price elasticity of demand between beef and chicken is
A) perfectly inelastic.
B) inelastic.
C) elastic.
D) perfectly elastic
I also want to know what is the difference between
1. perfectly inelastic and inelastic
2. perfectly elastic and inelastic
Thanks
C) elastic
Perfectly inelastic means that no matter what the increase in price is, the quantity demanded of a good remains the same. Such an example is insulin for diabetic patients. Inelastic on the other hand, means that quantity demanded will be affected but the elasticity is less than 1. Denoted by a steep curve on the graph.
Perfectly elastic means that a light change in price will swing the demand completely. Products will usually be homogenous and easily substitutable.
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