Answer:
The answer is: D) inelastic
Step-by-step explanation:
Price elasticity of demand (PED) measures how much the quantity demanded of a product or service will change if the price of the product or service changes.
It is determined by the following formula:
- PED = % change in quantity demanded / % change in Price
If the PED > 1, the product is considered elastic, a change in its price will cause a larger proportional change in its quantity demanded.
If the PED < 1, the product is considered inelastic, a change in its price will cause a smaller proportional change in its quantity demanded.
In this case, the PED = 0 (= 0% / 15%), so it is completely inelastic.