Use the following for questions 108-115.
Exhibit: The Demand for Bungalow Bob's Bagels

-(Exhibit: The Demand for Bungalow Bob's Bagels) Demand is price inelastic between:
A) $0.40 and $0.50.
B) $0.50 and $0.60.
C) $0.60 and $0.70.
D) $0.70 and $0.80.

Question

Use the following for questions 108-115.
Exhibit: The Demand for Bungalow Bob's Bagels
 
-(Exhibit: The Demand for Bungalow Bob's Bagels) Demand is price inelastic between:
A) $0.40 and $0.50. 
B) $0.50 and $0.60. 
C) $0.60 and $0.70. 
D) $0.70 and $0.80.

Quizplus · Accepted Answer

Demand is price inelastic when the percentage change in quantity demanded is less than the percentage change in price. In this case, the percentage change in quantity demanded between $0.40 and $0.50 is less than the percentage change in price, so demand is price inelastic between $0.40 and $0.50.

Use the Following for Questions 108-115