If the price of textbooks increases by one percent and the quantity demanded falls by one-half percent, then demand for textbooks is:
A)negative.
B)inelastic.
C)elastic.
D)unit elastic.

Question

Quizplus · Accepted Answer

If the percentage change in quantity is less than the percentage change in price, then the price elasticity of demand will be less than one in absolute value, implying that demand is inelastic.

If the Price of Textbooks Increases by One Percent and the Quantity