Market researcher notices that, when the price of good A is increased from $1 per unit to $2 per unit, the quantity demanded falls from 6000 to 5400 units of A per day.
a) Calculate the price elasticity of demand for good A in the price range given.
b) Is the demand for good A elastic or inelastic? Explain.
c) Based on your answer in part c, what are some of the characteristics of good A? Explain