Although the price of a chemical added to paint to protect surfaces from mould and mildew has almost doubled, the price of paint only rose an average of 5 percent, and the demand for both paint and the chemical that eliminates mould and mildew remained stable. What is the demand for this chemical?

Question

Quizplus · Accepted Answer

The fact that the price of the chemical has almost doubled but the demand for it remained stable suggests that the demand for the chemical is inelastic, meaning that consumers are willing to pay a higher price for the chemical despite the price increase.

Although the Price of a Chemical Added to Paint to Protect