Question

With increase in price of chocolate by 30%, its demand falls by 33%. This indicates that demand for chocolate is

(1 Point)

elastic

inelastic

unitary elastic

perfectly elastic​

Answer 1

Answer:

Elastic

Explanation:

Elasticity of demand refers to the change in demand when there is a change in another factor such as price or income.

If demand for a good or service is static even when the price changes, demand is said to be inelastic.