Demand is said to be inelastic if a(n) ______. a. 9 percent price increase causes a 11 percent increase in quantity demanded b. 5 percent price increase causes 6 percent reduction in quantity demanded c. 8 percent price increase causes an 8 percent reduction in quantity demanded d. 10 percent price increase causes
Demand is said to be inelastic if a(n) ______. a. 9 percent price increase causes a 11 percent increase in quantity demanded b. 5 percent price increase causes 6 percent reduction in quantity demanded c. 8 percent price increase causes an 8 percent reduction in quantity demanded d. 10 percent price increase causes
Chapter3: Market Demand And Supply
Section: Chapter Questions
Problem 18SQ
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Question
a. 9 percent
b. 5 percent price increase causes 6 percent reduction in quantity demanded
c. 8 percent price increase causes an 8 percent reduction in quantity demanded
d. 10 percent price increase causes a 2 percent reduction in quantity demanded
Expert Solution
Step 1
Elasticity of demand measures the responsiveness of quantity demanded with respect to change in price.
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