While shopping,Anita found a "gardening kit" containing a pair of work gloves,a trowel,and a hand rake handsomely arranged in a clay flower pot.The items,which were sold together,retailed at $24.50,but had been marked down to $12.99.The retailer sold only one for $24.50 and six at the $12.99 price.Which of the following describes demand for the gardening kit package?
A)It is predictable.
B)It is synergistic.
C)It is inelastic.
D)It is elastic.

Question

Quizplus · Accepted Answer

If demand is elastic,price increases will decrease demand by a larger amount,reducing total revenue.

While Shopping,Anita Found a "Gardening Kit" Containing a Pair of Work