Question

When price falls by 5% and demand increases by 6%, then the elasticity of demand is: 

elastic

inelastic

unitary elastic

zero​

Answer 1

Answer:

elastic demand

Explanation:

Here is your answer

Answer 2

Answer: Elastic

Explanation:

• Elastic demand is the demand in which the demand of the product is large due to a decrease in price.
• And the inelastic demand is the change in demand is small due to the change in price.
• Here we can see that the price falls by 5% and the demand increases by 6% so we cans ay that the demand is elastic.
• Hence, the correct answer is "elastic".

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