Question

If a 10 percent increase in the price of a good leads to a 25 percent decrease in the quantity demanded of the good, demand is

Answer 1

Answer: 23

Explanation:

Answer 2

In the case when there is a 10% increase in the price of the good that results in the decrease in the quantity demanded to 25% so the demand should be inelastic.

Given that,

• The price of the good is increased by 10%.
• The quantity demanded is reduced to a 25%

Now the elasticity should be

= -25% ÷ 10%

= -2.5%

Therefore we can conclude that when there is a 10% increase in the price of the good that results in the decrease in the quantity demanded to 25% so the demand should be inelastic.

Learn more about the inelastic here: brainly.com/question/13572905