Which one of the following illustrates an inelastic demand?
a) A price elasticity of demand equal to 1.0.
b) A price elasticity of demand equal to 2.0.
c) A 10 percent rise in price leads to a 20 percent decrease in quantity demanded.
d) A 10 percent rise in price leads to a 5 percent decrease in quantity demanded.
e) A price elasticity of demand equal to infinity.
Ans: d) A 10 percent rise in price leads to a 5 percent decrease in quantity demanded.
Business
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