A 15% decrease in the price of sugar causes the quantity demanded to rise by 5%.The demand for sugar is
A)perfectly elastic.
B)relatively elastic.
C)unit elastic.
D)relatively inelastic.
E)perfectly inelastic.

Question

Quizplus · Accepted Answer

The demand for sugar is relatively inelastic because the percentage change in quantity demanded (5%) is less than the percentage change in price (15%). This indicates that consumers' demand for sugar does not change much in response to price changes.

A 15% Decrease in the Price of Sugar Causes the Quantity