Replicas of popular mid-century furniture and homewares can be highly sought after by interior designers. Suppose a company sold 1000 replica Eames chairs for a price of $600 each. However, when they set the price at $750 they only sold 750.
Which of the following statements are true:
The point price elasticity of demand for replica Eames chairs at a price of $600 is unit elastic.
A 1% increase in the price of replica Eames chairs would lead to a 1% decrease in chairs sold.
The point price elasticity of demand for replica Eames chairs at a price of $600 is 0.0239 (to four decimal places).
The point price elasticity of demand for replica Eames chairs at a price of $600 is 0.02 (to two decimal places).