If Princess Cruise Lines increased the price of its seven-day cruise package by 10% and, as a result, experienced a 20% decline in customer bookings, Princess's demand would be
A)steady.
B)inelastic.
C)elastic.
D)prestige.
E)marginal.

Question

Quizplus · Accepted Answer

A 10% increase in price led to a 20% decline in customer bookings, indicating that the demand for Princess Cruise Lines is elastic. This means that customers are sensitive to price changes and will likely look for cheaper alternatives if the price increases too much.

If Princess Cruise Lines Increased the Price of Its Seven-Day