corbieremaddie corbieremaddie
  • 12-02-2022
  • Business
contestada

If price increases by 12 percent and quantity demanded decreases by 12 percent, demand is:
- inelastic
- elastic
- unit-elastic

Respuesta :

mohammedtaisiralam06
mohammedtaisiralam06 mohammedtaisiralam06
  • 12-02-2022

Answer:

inelastic

Explanation:

Price elasticity of demand = percentage change in quality /percentage change in price

-12/12=-1

This tells us that it is a relatively large price change in order to cause a relatively small change in quantity demanded. In other words consumer responsiveness to change is relatively small so it is inelastic

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