Final answer:
To determine whether the demand for orange juice is elastic or inelastic, we need more information about the percentage change in quantity demanded.
Step-by-step explanation:
To determine whether the price change for orange juice is elastic or inelastic, we can use the concept of price elasticity of demand.
Price elasticity of demand (E) is calculated as the percentage change in quantity demanded divided by the percentage change in price.
E= % change in quantity demanded ÷ % change in price
If E>1, it is elastic.
If 0<E<1, it is inelastic.
If E=1, it is unitary elastic.
Given the price increase from $3.00 to $5.00, and assuming the quantity demanded decreases, it is likely to be inelastic. However, without information on the percentage change in quantity demanded, we cannot precisely determine the elasticity.
If the percentage change in quantity demanded is less than the percentage change in price, it would be inelastic. Therefore, the answer is: B. Inelastic