a-company-notices-that-lowering-the-price-of-its-product-from-20-to-15-increases

Question

A company notices that lowering the price of its product from $20 to $15 increases sales from 100 units to 150 units. What can be inferred about the demand elasticity?

Accepted Answer

Demand is elastic.

Answer

Demand is unit elastic.

Answer

Demand is perfectly elastic.

Answer

Demand is inelastic.

A company notices that lowering the price of its product from \$20 to \$15 increases sales from 100 units to 150 units. What can be inferred about the demand elasticity?