If a fall in the price by 25 percent leads to a rise in demand by only 10 percent leads, the situation is called a/an

Perfectly elastic demand

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Elastic demand

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Unit elastic demand

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Inelastic demand

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Solution

The correct option is D
Inelastic demand

When a large change in price does not bring about a significant change in the demand, the demand is said to be inelastic. In this situation, the percentage change in demand is lesser than the percentage change in price.

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If a fall in the price by 25 percent leads to a rise in demand by only 10 percent leads, the situation is called a/an

The correct option is D Inelastic demand When a large change in price does not bring about a significant change in the demand, the demand is said to be inelastic. In this situation, the percentage change in demand is lesser than the percentage change in price.

The correct option is D
Inelastic demand

When a large change in price does not bring about a significant change in the demand, the demand is said to be inelastic. In this situation, the percentage change in demand is lesser than the percentage change in price.