A price change causes the quantity demanded of a good to decrease by 30 percent, while the total...

Question

A price change causes the quantity demanded of a good to decrease by 30 percent, while the total revenue of that good increases by 15 percent. Is the demand curve elastic or inelastic? Explain.

Robert · Accepted Answer

A price change causes the quantity demanded of a good to decrease by 30 percent, while the total revenue of that 
good increases by 15 percent. Is the demand curve elastic or inelastic? Explain. 
Solution: 
Price elasticity of demand expresses the response of quantity demanded of a good to a change in its 
price, given the consumers income,

A price change causes the quantity demanded of a good to decrease by 30 percent, while the total revenue of that good increases by 15 percent. Is the demand curve elastic or inelastic? Explain.

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