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

Question

Quizplus · Accepted Answer

The demand is elastic because the percentage change in quantity demanded (8%) is greater than the percentage change in price (4%), indicating that consumers are responsive to price changes.

Dan Sells Newspapers