If a 5 percent reduction in the price of a commodity results in a 3 percent increase in the quantity demanded, demand is said to be
A)perfectly elastic.
B)elastic.
C)unit elastic.
D)inelastic.
E)perfectly inelastic.

Question

Quizplus · Accepted Answer

Demand is considered inelastic when the percentage change in quantity demanded is less than the percentage change in price, indicating that consumers are not very responsive to price changes in this scenario.

If a 5 Percent Reduction in the Price of a Commodity