Asked by
Kathryn Spears
on Nov 25, 2024
Verified
The price of product X is reduced from $50 to $45 and, as a result, the quantity demanded increases from 120 to 140 units. Therefore, demand for X in this price range
A) has declined.
B) is of unit elasticity.
C) is inelastic.
D) is elastic.
Unit Elasticity
Demand or supply for which the elasticity coefficient is equal to 1; means that the percentage change in the quantity demanded or quantity supplied is equal to the percentage change in price.
Inelastic
A description of a product or service's demand when consumers' demand is relatively insensitive to price changes.
- Evaluate the repercussions of price adjustments on the demanded quantity in the context of the elasticity coefficient.
Verified Answer
DE
Learning Objectives
- Evaluate the repercussions of price adjustments on the demanded quantity in the context of the elasticity coefficient.