Table 7-9
$\begin{array}{|c|c|}
\hline\begin{array}{c}
\text { Price per Pound } \
\text { (dollars) }
\end{array} & \begin{array}{c}
\text { Quantity of Cheese } \
\text { Demanded (pounds) }
\end{array} \
\hline \$ 16 & 3 \
\hline 14 & 4 \
\hline 12 & 5 \
\hline 10 & 6 \
\hline 8 & 7 \
\hline 6 & 8 \
\hline 4 & 9 \
\hline 2 & 10 \
\hline
\end{array}$
-Refer to Table 7-9.Over what range of prices is the demand inelastic?
A) over the entire range of prices
B) between $12 and $16
C) between $8 and $16
D) between $2 and $8

Question

Table 7-9
 $\begin{array}{|c|c|}
\hline\begin{array}{c}
\text { Price per Pound } \
\text { (dollars) }
\end{array} & \begin{array}{c}
\text { Quantity of Cheese } \
\text { Demanded (pounds) }
\end{array} \
\hline \$ 16 & 3 \
\hline 14 & 4 \
\hline 12 & 5 \
\hline 10 & 6 \
\hline 8 & 7 \
\hline 6 & 8 \
\hline 4 & 9 \
\hline 2 & 10 \
\hline
\end{array}$
-Refer to Table 7-9.Over what range of prices is the demand inelastic?
A) over the entire range of prices
B) between $12 and $16
C) between $8 and $16
D) between $2 and $8

Quizplus · Accepted Answer

Demand is inelastic when the percentage change in quantity demanded is less than the percentage change in price. Looking at the table, we can see that this occurs between the price range of $2 and $8, where the quantity demanded only increases from 9 to 10 pounds even though the price decreases from $4 to $2 (a percentage decrease of 50%). This means that consumers are relatively insensitive to changes in price within this range, indicating inelastic demand.

Table 7-9 -Refer to Table 7-9