Asked by Alicja Gawlik on Jun 17, 2024
Verified
When the price of a product increases by 15 percent, the quantity demanded decreases by 10 percent. We can therefore conclude that the demand for this product is
A) elastic.
B) inelastic.
C) cross-elastic.
D) unitary elastic.
Price Of Product
The monetary value assigned to a good or service that consumers are required to pay to acquire it.
Quantity Demanded
The total amount of a good or service that consumers are willing to purchase at a given price level in a specific time period.
- Describe the differentiation between elastic, inelastic, and unitary demand.
Verified Answer
NO
Naomi OjokojoJun 20, 2024
Final Answer :
B
Explanation :
The demand is inelastic because the percentage change in quantity demanded (10%) is less than the percentage change in price (15%), indicating that consumers' demand is relatively insensitive to price changes.
Learning Objectives
- Describe the differentiation between elastic, inelastic, and unitary demand.