The demand for your product fell 66% when the price increased by 50%.This is an example of what type of demand
A) Coefficient
B) Inelastic
C) Elastic
D) Unitary
E) none of the above

Question

Quizplus · Accepted Answer

This is an example of elastic demand because the percentage decrease in quantity demanded (66%) is greater than the percentage increase in price (50%). In other words, consumers are sensitive to the change in price and are willing to reduce their quantity demanded significantly. This indicates that the product is not a necessity and there are substitutes available in the market.

The Demand for Your Product Fell 66% When the Price