If the price of a good increases by 10% and the quantity demanded decreases by 5%, then at that price, the good is
A)elastic.
B)inelastic.
C)perfectly inelastic.
D)perfectly elastic.

Question

Quizplus · Accepted Answer

The good is inelastic because the percentage change in quantity demanded (-5%) is less than the percentage change in price (+10%), indicating that consumers' demand is relatively unresponsive to price changes.

If the Price of a Good Increases by 10% and the Quantity