If the price of the product falls by five percent and the volume of sales increases by eight percent, the demand for the product is ______.

Question

Quizplus · Accepted Answer

The demand for a product is considered price elastic if the percentage change in quantity demanded is greater than the percentage change in price, indicating that consumers are responsive to price changes. In this case, an 8% increase in sales volume in response to a 5% decrease in price indicates price elasticity.

If the Price of the Product Falls by Five Percent