If a 10% rise in price causes a 5% decrease in the quantity demanded of a commodity, the elasticity of demand is
unitary elastic
zero elastic
elastic
inelastic
Explanation
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Discussions (19)
It's inelastic. Given the formula for price elasticity.. Δin quantity demanded/Δ in price.
=5/10
=½ or 0.5. Which then makes it inelastic in nature. Elastic is greater than one less than unity while inelastic is grater than zero less than one. Since it's less than one; it's then inelastic.
The option is wrong.
My point!
What is elastic? Elastic is if a small change in price leads to a greater change in quantity demand.
And note! From the question which the price increase by 10% while decrease by 5% and with elastic mean no relationship.
What is Inelastic?
is when a large or great change in price leads to a small change in quantity demand.
I hope this clarify.
u guys are really deluding us wit fallacious nd deceptive answers plz... jst Imagine ur self, for God sake hw can u say its c??? D is dey ansa my Friend dnt presume wot u dnt know!!!!
Mr myschoolgist.com, I will advise you that you should find an expert in different discipline to help you review all these your answers ooo or else students won't make use of this thing again oo, hope you can see their comment
the answer is a jhor...inelastic goods ....no mata d change in d price d quantity demanded won't change
im not sure about this answer ooo from your explaination, you said it inelastic and now you are giving another option kindly check again my school
