If we observe that when the price of chocolate increases by 10%, quantity demanded falls by 5%, then the demand for chocolate is price inelastic.

Question

Quizplus · Accepted Answer

The demand for chocolate is price inelastic because the percentage change in quantity demanded (5%) is less than the percentage change in price (10%), indicating that consumers' demand for chocolate is relatively insensitive to price changes.

If We Observe That When the Price of Chocolate Increases