Asked by
Catherine Coreas
on Nov 30, 2024
Verified
A 15% decrease in the price of radios causes the quantity demanded to rise by 16%.The demand for radios is
A) very elastic.
B) slightly elastic.
C) unit elastic.
D) slightly inelastic.
E) very inelastic.
Unit Elastic
A scenario in which a change in price by a certain percentage results in an identical percentage change in the amount demanded or supplied.
Quantity Demanded
The total amount of a good or service that consumers are willing and able to purchase at a given price during a specified time period.
Price of Radios
The amount of money required to purchase a radio, influenced by factors such as brand, technology, and market demand.
- Gain an understanding of the elasticity concept related to demand and the elements impacting it.
- Understand the impact of price fluctuations on overall revenue based on elasticity.
Verified Answer
HP
Learning Objectives
- Gain an understanding of the elasticity concept related to demand and the elements impacting it.
- Understand the impact of price fluctuations on overall revenue based on elasticity.