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6 October, 18:45

When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. The price elasticity of demand coefficient for this product is Group of answer choicesA) elastic. B) inelastic. C) cross-elastic. D) unitary elastic.

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  1. 6 October, 20:52
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    The price elasticity of demand coefficient for this product is elastic.

    Explanation:

    Price elasticity of demand is a measure of consumer's sensitivity to a shift in the cost of a commodity. The more general term demand elasticity tests the effect of a transition on any of several variables including the price of the commodity.

    The price elasticity of demand is a measure of the effect on the sales of a commodity of a price transition, whether up or down. Higher demand price elasticity indicates consumers are more sensitive to price increases for a commodity.
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