Million apps available for download

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The Google Play and Apple App Stores each have over a million apps available for download. One of the top selling apps on the Google Play store is Minecraft. Suppose Minecraft previously received 5,800 downloads per day at a price of $8.49 but has now decided to decrease the price to $7.99. They now receive 6,000 downloads per day.

Which of the following statements are true:

A) A 1% decrease in the price of downloading Minecraft from $8.49 to $7.99 leads to a greater than 1% increase in the number of downloads per day.

B) The point price elasticity of demand for Minecraft at a price of $8.49 is 0.5855 (to 4 decimal places).

C) The point price elasticity of demand for Minecraft at a price of $7.99 is 58.55% (to two decimal places).

D) The point price elasticity of demand for Minecraft at a price of $7.99 is perfectly inelastic (approximately zero).

Reference no: EM132130137

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