Ask Question
15 December, 12:19

As the price of good X decreasesfrom $10to $8, quantity demanded increasesfrom 10to 13. Based upon this information we canconclude that the demand for X is

A. inelastic.

B. elastic.

C. insufficient information for judgment.

D. unit elastic.

+5
Answers (1)
  1. 15 December, 12:28
    0
    Answer: B - Elastic

    Explanation: The elasticity of demand can be perfectly elastic or relatively elastic.

    The above information given is a relatively elastic demand because the change in price gives rise to a proportionate change (increase) in demand for the product.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “As the price of good X decreasesfrom $10to $8, quantity demanded increasesfrom 10to 13. Based upon this information we canconclude that the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers