Asked by Keandra Moffitt on Jun 17, 2024
Verified
The price of product X is reduced from $100 to $90 and, as a result, the quantity demanded increases from 50 to 60 units. Therefore, demand for X in this price range
A) has declined.
B) is of unit elasticity.
C) is inelastic.
D) is elastic.
Unit Elasticity
A situation in economics where the percentage change in quantity demanded or supplied is equal to the percentage change in price.
Quantity Demanded
Quantity demanded is the total amount of a goods or services that consumers are willing and able to purchase at a specific price level.
Product X
A placeholder name commonly used to denote a specific product, goods, or service in economic models and discussions that is not further specified.
- Discriminate between demands categorized as elastic, inelastic, and unit-elastic.
Verified Answer
Learning Objectives
- Discriminate between demands categorized as elastic, inelastic, and unit-elastic.
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