Suppose that when the price of aspirin rises from $2 to $3 per bottle,the quantity demanded falls from 800 bottles per day to 700 bottles per day.Over this range,the demand for aspirin is
A)elastic
B)unitary elastic
C)perfectly elastic
D)inelastic
E)perfectly inelastic

Question

Quizplus · Accepted Answer

The demand for aspirin is inelastic because the percentage change in quantity demanded (12.5%) is less than the percentage change in price (50%). In other words, the change in price had a relatively small impact on the quantity demanded, indicating a less responsive/inelastic demand.

Suppose That When the Price of Aspirin Rises from $2