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GuDViN [60]
3 years ago
10

Although the price of a chemical added to paint to protect surfaces from mold and mildew has almost doubled, the price of paint

has risen an average of only 5 percent, and the demand for both paint and the chemical that eliminates mold and mildew has remained stable. The demand for this chemical is:
Social Studies
2 answers:
V125BC [204]3 years ago
3 0

Answer: Inelastic

Explanation:

A good price is inelastic if a change in price leads to a small change in quantity demanded or does not significantly affect demand for the product.

mars1129 [50]3 years ago
3 0

Answer: Inelastic

Explanation: Taking cognizance of the changes in the price and demand of the chemical, one could say the chemical exhibits an inelastic demand. Usually, when prices increase, demand decreases ( elastic demand) . However, in the case of the chemical described, the price increased significantly such that it almost doubled the initial price while still maintaining a stable demand ( that is there was no decrease in supply). This is a typical inelastic demand scenario.

Conclusively, we can project that the chemical product has no substitute or a rather cheaper alternative, otherwise consumers might have turned their attention to the substitute product hence, leading to decrease in demand of the chemical.

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