Westonci.ca is the Q&A platform that connects you with experts who provide accurate and detailed answers. Experience the convenience of finding accurate answers to your questions from knowledgeable professionals on our platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.
Sagot :
In the case when there is a 10% increase in the price of the good that results in the decrease in the quantity demanded to 25% so the demand should be inelastic.
Given that,
- The price of the good is increased by 10%.
- The quantity demanded is reduced to a 25%
Now the elasticity should be
= -25% ÷ 10%
= -2.5%
Therefore we can conclude that when there is a 10% increase in the price of the good that results in the decrease in the quantity demanded to 25% so the demand should be inelastic.
Learn more about the inelastic here: brainly.com/question/13572905
We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.
