A popular mobile phone brand priced their phones at $496 and sold 100,000 units in the previous financial year. They decided to reduce their price to $396 and subsequently sold 110,000 units in this financial year. Assume that demand is linear Which of the following statements is true? A large number of substitutes in the market for mobile phones would explain why the demand is inelastic. The elasticity of demand is elastic at all points along the demand curve. The point elasticity of demand at a price of $396 is elastic. OThe point elasticity of demand at a price of $396 is 0.396 OThe point elasticity of demand at a price of $496 is 0.496