Dan sells newspapers. Dan says that a 4 per cent increase in the price of a newspaper will decrease the quantity of newspapers demanded by 8 per cent. According to Dan, the demand for newspapers is _______.
A) elastic
B) perfectly elastic
C) unit elastic
D) inelastic

Question

Quizplus · Accepted Answer

The demand for newspapers is considered elastic because the percentage change in quantity demanded (-8%) is greater than the percentage change in price (+4%), indicating a high sensitivity to price changes.

Dan Sells Newspapers