a-restaurant-lowers-the-price-of-its-meals-from-30-to-25-resulting-in-an-increas

Question

A restaurant lowers the price of its meals from $$30 to 25$$, resulting in an increase in sales from 200 meals to 300 meals. What can be inferred about the demand elasticity?

Accepted Answer

Demand is elastic.

Answer

Demand is unit elastic.

Answer

Demand is inelastic.

Answer

Demand is perfectly elastic.

A restaurant lowers the price of its meals from \$30 to \$25, resulting in an increase in sales from 200 meals to 300 meals. What can be inferred about the demand elasticity?