If a 35 per cent increase in the price of golf balls led to a 42 per cent decrease in quantity demanded, then the demand for golf balls is:
A)unit-elastic.
B)perfectly elastic.
C)relatively inelastic.
D)relatively elastic.

Question

Quizplus · Accepted Answer

The percentage decrease in quantity demanded (42%) is greater than the percentage increase in price (35%), indicating that demand is relatively elastic. This means that consumers are quite responsive to price changes and may switch to alternative products if the price of golf balls increases too much.

If a 35 Per Cent Increase in the Price of Golf