Answer:
The answer is A.
Explanation:
If a a product is price elastic that means it is sensitive to price. If there is an increase in price, the quantity demanded of that product will drop and if there is a decrease in price, the quantity demanded of that product will rise. Price elasticity has a value greater than one.
Because the price rose from $200 to $250, quantity demanded fell from 8000 units to 6,000 units.
If it were to be inelastic, the quantity demanded will not change or will change with very little percentage.
