Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P x . Assume that P = $8, I = 200, and P x = $10.
-If a product has an elastic demand, it means that consumers are relatively insensitive to a change in the price of the product.

Question

Quizplus · Accepted Answer

An elastic demand means that consumers are relatively sensitive to a change in the price of the product.

Scenario 5.1 The Demand for Noodles Is Given by the Following Equation