For which of the following items will a 10% price increase have the greatest impact on the demand for the object?
A)a 50 cent candy bar
B)a 10 cent candy bar
C)a 1 dollar box of candy
D)a 5 dollar box of candy

Question

Quizplus · Accepted Answer

A 10% increase in price of a 5 dollar box of candy means the price will increase by 50 cents, which is equivalent to the entire price of the 50 cent candy bar or the 10 cent candy bar. Therefore, the demand for the 5 dollar box of candy will be more impacted by the price increase than the other options.

For Which of the Following Items Will a 10% Price