Consider a Market in Which Price Is Initially $6 and Falls

Multiple Choice

Consider a market in which price is initially $6 and falls to $2. If we know that the price effect outweighed the quantity effect, we know the market is _____ and is more likely to be represented by _____.

A) elastic; Graph A
B) inelastic; Graph A
C) elastic; Graph B
D) inelastic; Graph B