A 10 percent rise in the price of housing reduces the quantity demanded of housing by 3 percent. We can conclude that the demand for housing is:
A) inelastic.
B) elastic.
C) unitary elastic.
D) perfectly elastic.

Question

Quizplus · Accepted Answer

The demand for housing is inelastic because the percentage change in quantity demanded (3%) is less than the percentage change in price (10%).

A 10 Percent Rise in the Price of Housing Reduces