Shanequa and Mya have a business that provides personal fitness training services.They know that after raising their prices from $50 to $75 per hour,the quantity of hours they spent delivering training services only fell from 45 to 40 hours per week.The demand for their services is:
A) elastic, with a price elasticity coefficient greater than one.
B) elastic, with a price elasticity coefficient less than one.
C) inelastic, with a price elasticity coefficient greater than one.
D) inelastic, with a price elasticity coefficient less than one.

Question

Quizplus · Accepted Answer

The fact that the change in price led to a relatively small change in the quantity demanded indicates that demand is inelastic, and the price elasticity coefficient must be less than one. Therefore, the best choice is D.

Shanequa and Mya Have a Business That Provides Personal Fitness