Question

The cost to produce tooth paste has increased by 1000%. This has caused the price to quadruple, but the demand has remained the same. Based on the information provided, is this product elastic or inelastic?

Answer 1

Inelastic

Step-by-step explanation:

In the given question,the cost to produce the toothpaste has increased, which led to the increase in the price of the toothpaste significantly. But there is no change in the demand of the toothpaste.

Hence, this product is inelastic.

In the inelastic demand, the demand of the product does not change with any variation in the price of the product.