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Lena [83]
3 years ago
10

If a 20 percent increase in the price of Red Bull energy drinks results in a decrease in quantity demanded of 25 percent, we say

the demand for Red Bull is __________ in this range.
Business
1 answer:
Ierofanga [76]3 years ago
3 0

Answer:

Elastic

Explanation:

Elasticity of demand = percentage change in quantity demanded / percentage change in price

25% / 20% = 1.25

If the elasticity of demand is greater than one ,it means demand is elastic.

Elastic demand is when a change in price leads to a greater change in quantity demanded.

I hope my answer helps you

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