Assuming that the price deceases from $10 to $5 and the quantity demanded increases from 20 units to 30 units, which of the following is true
the demand is inelastic
the price elasticity of demand is 1
demand is unit elastic
the price is perfectly elastic
the price elasticity of demand is -1
If the price deceases from $10 to $5 and the quantity demanded increases from 20 units to 30 units, then the elasticity of demand is:
"Ed = \\frac {30-20} {5-10} \u00d7 \\frac {5+10} {30+20} = -0.6,"
so the correct answer is "the demand is inelastic".
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