a-50-increase-in-the-price-of-a-luxury-car-leads-to-a-60-decrease-in-quantity-de

Question

A 50% increase in the price of a luxury car leads to a 60% decrease in quantity demanded. What does this imply about the elasticity of luxury car demand?

Accepted Answer

Luxury car demand is elastic.

Answer

Luxury car demand is perfectly inelastic.

Answer

Luxury car demand is inelastic.

Answer

Luxury car demand is unit elastic.