Question

If a 20 percent increase in the price of Red Bull energy drinks results in a decrease in the quantity demanded of 25​ percent, demand for Red Bull is​ _______ in this range.

A. inelastic
B. elastic
C. vertical
D. unit elastic

Answer 1

option B

Step-by-step explanation:

The correct answer is option B

In economics, the elasticity demand is how sensitive the demand for a good is to change with other economic variables. Elastic demand is one in which elasticity is greater than 1 means high responsiveness to changes in price.

Inelastic demand is one in which the elasticity is less than one in which means low responsiveness to change in price.

so, Red Bull is Elastic range