Answer to Question #68137 in Microeconomics for Lucy

Question

If the demand for potatoes is inelastic, a 4% increase in the price of potatoes will:

a. decrease the quantity of potatoes by more than 4%
b. decrease the quantity of potatoes by less than 4%
c. increase the quantity of potatoes by less that 4%
d. increase the quantity of potatoes by more than 4%

Answer 1

Answer : b
Ed < -1