Answer:
Inelastic between the price of $6 and the price of $8
Explanation:
At price $8, the total expenditure ;
= price * Quantity
=$8 * 13600
=$108,800
At price $6, the total expenditure;
=$6 * 15200
=$91,200
Since the total expenditure is decreasing with a decrease in price then the elasticity of demand will be inelastic.
Answer:
Inelastic
Explanation:
The elasticity of demand is the response of consumers to a change in the price of a product (Barnier, 2020). It is calculated as the percentage change in the quantity demanded divided by the percentage change in price.
Looking at the number of units sold at each price ($6 and $8), we can determine that the demand is inelastic. The percentage change in demand is smaller than the percentage change in price. This means that the demand curve will be steep.
