If quantity demanded increases by 60% when price decreases by 40%, we can conclude that the...

Question

Question

If quantity demanded increases by 60% when price decreases by 40%, we can conclude that the good is:

Answer 1

Answer #1

ANSWER:

Price EOD = % change in quantity demanded / % change in price

= 60% / 40%

= 1.5

Since it is higher than 1, thus demand of good is considered elastic

Answer 2

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