contestada

When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. The price elasticity of demand coefficient for this product is Group of answer choicesA) elastic. B) inelastic. C) cross-elastic. D) unitary elastic.

Respuesta :

The price elasticity of demand coefficient for this product is elastic.

Explanation:

Price elasticity of demand is a measure of consumer's sensitivity to a shift in the cost of a commodity. The more general term demand elasticity tests the effect of a transition on any of several variables including the price of the commodity.

The price elasticity of demand is a measure of the effect on the sales of a commodity of a price transition, whether up or down. Higher demand price elasticity indicates consumers are more sensitive to price increases for a commodity.