a-bookstore-reduces-the-price-of-its-best-selling-novel-from-20-to-15-and-sales-

Question

A bookstore reduces the price of its best-selling novel from $$20 to 15$$, and sales increase from 100 to 150 copies per week. What can be inferred about the elasticity of demand for the novel?

Accepted Answer

Demand is elastic, as total revenue increases.

Answer

Demand is perfectly elastic, as sales increase significantly.

Answer

Demand is unit elastic, as total revenue remains unchanged.

Answer

Demand is inelastic, as total revenue decreases.

A bookstore reduces the price of its best-selling novel from \$20 to \$15, and sales increase from 100 to 150 copies per week. What can be inferred about the elasticity of demand for the novel?