If the price of a good increases by 15% and the quantity demanded falls by 20%,demand is:
A)price-elastic.
B)price-inelastic.
C)price unit-elastic.
D)normal.

Question

Quizplus · Accepted Answer

A 15% increase in price leads to a 20% decrease in quantity demanded, which indicates a greater change in quantity demanded relative to the change in price, resulting in an elasticity measure greater than one. Therefore, demand is price-elastic.

If the Price of a Good Increases by 15% and the Quantity