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17 February, 04:48

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.

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Answers (1)
  1. 17 February, 05:57
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    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.
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