Suppose a 10% increase in the price of aspirin leads to a 5% decrease in the quantity demanded of aspirin. The demand for aspirin, therefore, is
A)elastic.
B)inelastic.
C)unit elastic.
D)perfectly inelastic.

Question

Quizplus · Accepted Answer

If the percentage change in quantity demanded is less than the percentage change in price, then the price elasticity of demand is less than one, implying that demand is inelastic.

Suppose a 10% Increase in the Price of Aspirin Leads