If the price elasticity of demand for Mountain Dew is 4.4 then

Select one:

a. Mountain Dew is the favorite of many soda drinkers.

b. Mountain Dew has a low price elasticity of demand.

c. Mountain Dew has no substitutes.

d. Mountain Dew has a high price elasticity of demand.

If the price elasticity of demand for Mountain Dew is 4.4 then "mountain dew has a high price elasticity of demand".

Answer: Option D

Explanation:

In economics "Price elasticity of demand" (PED) is a metric required to illustrate the flexibility or elasticity of a product or service's required quantity to increase its value when nothing but the value of product vary. When mountain dew have price elasticity of demand is 4.4 this follows that a price increase of 10 percent would result in the quantity needed decline by 44% as illustrated below:

4.4 = (% quantity change) / (% price change)

4.4 = x / 10

x = - 4.4 (10) = - 44% here negative sign shows decline in quantity required.