Asked by
Katelyn Miley
on Nov 17, 2024
Verified
If we observe that when the price of chocolate increases by 10%, quantity demanded falls by 5%, then the demand for chocolate is price inelastic.
Price Inelastic
A situation in which the demand for a good does not change significantly in response to a change in price, indicating that consumers are less sensitive to price changes.
- Acquire knowledge on the concept and mathematical assessment of demand's price elasticity.
- Identify the differences between elastic and inelastic demand.
Verified Answer
DG
Learning Objectives
- Acquire knowledge on the concept and mathematical assessment of demand's price elasticity.
- Identify the differences between elastic and inelastic demand.
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