The quantity demanded of your firm's product increased only 5 percent when the price of each unit was reduced by 33 percent. This is an example of what type of demand?
A) unitary
B) supply
C) coefficient
D) inelastic
E) elastic

Question

Quizplus · Accepted Answer

The quantity demanded increasing only 5 percent with a price decrease of 33 percent indicates that the product has an inelastic demand. Inelastic demand means that the change in quantity demanded is not proportionate to the change in price.

The Quantity Demanded of Your Firm's Product Increased Only 5