The Shoe Emporium reduces the price of its shoes by 50 percent and finds that the quantity demanded for its shoes more than doubles. What term accurately describes the demand for shoes from The Shoe Emporium?

Question

Quizplus · Accepted Answer

The fact that the quantity demanded more than doubles in response to a 50 percent price decrease indicates that the demand is elastic. If the demand were inelastic, then a price decrease would result in a relatively small increase in quantity demanded.

The Shoe Emporium Reduces the Price of Its Shoes by 50