3. A price change causes the quantity demanded of a good to decrease by 30 percent, while the totalrevenue of that good increases by 15 percent. Is the demand curve elastic or inelastic? Explain.(3)

Given, Decrease in quantity = 30 percent. Increase in total revenue = 15 percent.

Answered: 3. A price change causes the quantity…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 4PA: A price change causes the quantity demanded of a good to decrease by 30 percent, while the total...

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3. A price change causes the quantity demanded of a good to decrease by 30 percent, while the total revenue of that good increases by 15 percent. Is the demand curve elastic or inelastic? Explain.(3)