The price of product X is reduced from $100 to $90 and,as a result,the quantity demanded increases from 50 to 60 units.Therefore,demand for X in this price range:

A) has declined.
B) is of unit elasticity.
C) is inelastic.
D) is elastic.

Question

Olivia Galpin · Accepted Answer

Final Answer : D, Explanation :  The increase in quantity demanded by 20% (from 50 to 60 units) is greater than the price decrease of 10% (from $100 to $90). This indicates that demand for product X in this price range is elastic, meaning that consumers are responsive to changes in price.

The price of product X is reduced from $100 to $90 and,as a result,the quantity demanded increases from 50 to 60 units.Therefore,demand for X in this price range:

A) has declined.
B) is of unit elasticity.
C) is inelastic.
D) is elastic.

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Learning Objectives

Related questions

The price of product X is reduced from $100 to $90 and,as a result,the quantity demanded increases from 50 to 60 units.Therefore,demand for X in this price range:A) has declined.B) is of unit elasticity.C) is inelastic.D) is elastic.

Definitions

Learning Objectives

Learning Objectives

Related questions

The price of product X is reduced from $100 to $90 and,as a result,the quantity demanded increases from 50 to 60 units.Therefore,demand for X in this price range:

A) has declined.
B) is of unit elasticity.
C) is inelastic.
D) is elastic.