When the price increases by 30% and the quantity demanded drops by 10%, the price elasticity of demand is: non-inelastic. inelastic. pro-elastic. elastic. non-elastic.

Question

Social Studies

Jessica Mercer

29 August, 21:15

When the price increases by 30% and the quantity demanded drops by 10%, the price elasticity of demand is: non-inelastic. inelastic. pro-elastic. elastic. non-elastic.

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Answers (1)

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Laurel Lowe · Answer 1

I believe the answer is: in-elastic

A product is considered to be inelastic if the change in price do not or has very little impact of the product demand.

From the scenario above, we can see that even though the price drops, the percentage is still way below the amount of price icnreased (10% : 30%), so we can consider the product to be inelastic.