Which of the following statements would be TRUE of a market with a price elasticity of .20 (technically -.20, but the negative sign is typically omitted)?

1. This industry is likely to be susceptible to price wars

2.. Volume would decrease by 4% if prices increased by 1%

3. This market is relatively inelastic

4. Sales volume in this market has actually increased following a price increase

5. Volume would decrease by 1% if prices increased by 4%