When the price increases by 30% and the quantity demanded drops by 10%,the price elasticity of demand is:
A) non-inelastic.
B) inelastic.
C) pro-elastic.
D) elastic.
E) non-elastic.

Question

Quizplus · Accepted Answer

Price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. Here, it is -10%/30% = -0.33, which is less than 1, indicating inelastic demand.

When the Price Increases by 30% and the Quantity Demanded