If a 10 percent price increase causes the quantity demanded for a good to decrease by 20 percent, demand is elastic.

Name: If a 10 percent price increase causes the quantity demanded for a good to decrease by 20 percent, demand is elastic.
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

If a 10 percent price increase causes the quantity demanded for a good to decrease by 20 percent, demand is elastic.
​

Quizplus · Accepted Answer

A 10 percent price increase leading to a 20 percent decrease in quantity demanded means that the percentage change in quantity is greater than the percentage change in price, indicating that demand is elastic.

If a 10 Percent Price Increase Causes the Quantity Demanded