When the price of tortilla chips rose by 10 percent, the quantity of tortilla chips sold fell 4 percent.This indicates that the demand for tortilla chips is
A)inelastic.
B)elastic.
C)unit elastic.
D)perfectly inelastic.

Question

Quizplus · Accepted Answer

The demand for tortilla chips is inelastic because the percentage change in quantity demanded (4%) is less than the percentage change in price (10%).

When the Price of Tortilla Chips Rose by 10 Percent