When the price of a product increases by 15 percent, the quantity demanded decreases by 10 percent. We can therefore conclude that the demand for this product is
A)elastic.
B)inelastic.
C)cross-elastic.
D)unitary elastic.

Question

Quizplus · Accepted Answer

The demand is inelastic because the percentage change in quantity demanded (10%) is less than the percentage change in price (15%), indicating that consumers' demand is relatively insensitive to price changes.

When the Price of a Product Increases by 15 Percent