If a 10% increase in the price of beer reduces the quantity demanded by 8%, then...

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If a 10% increase in the price of beer reduces the quantity demanded by 8%, then...

If a 10% increase in the price of beer reduces the quantity demanded by 8%, then demand for beer is
1. Inelastic**
2. elastic
3. unit elastic
4. had increased
5. had decreased

The answer is A, but I thought that whenever quantitity demanded changes as a result of price change that makes it Elastic? Please explain!

business economics

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If an 8% decrease in price leads to a 4% increase in the quantity demanded of...

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Add Answer to: If a 10% increase in the price of beer reduces the quantity demanded by 8%, then...

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If a 10% increase in the price of beer reduces the quantity demanded by 8%, then...