Sort the following statements by the price elasticity of dem

Sort the following statements by the price elasticity of demand indicated: elastic, inelastic, or unit elastic.

Solution

1) Elastic

2) 12% increase results in 12% increase in sales

Unit elastic

3) Inelastic as price rise of 30% resulted in increase of sales by 63%

4) Elastic as price decrease 41% increased sales by 34%

5) Elastic as price decrease 31% increased sales by 42%