Question 11
MediumOriginal questionA 20% fall in the price of a good raises its quantity demanded by 10%. Demand is
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
eₚ = 10% ÷ 20% = 0.5, less than 1: inelastic.
- Concept
- Elasticity from percentage changes
- Typical timeTypical
- 70 s
- Your timeYours
- —
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