Question

Several companies produce latex gloves that are used in a variety of different industries. If one of the glove manufacturers decreases its price by just a few percentage points, it will result in a significant increase in quantity demanded. The demand for latex gloves is:______

a. synergistic.
b. inelastic.
c. unitary.
d. elastic.
e. static.

Answer 1

The correct answer is (D)

Step-by-step explanation:

The demand for latex gloves is elastic. The elastic demand is the one where a small change in price has significant effects on the overall demand of the product. In the above scenario, a slight change in the price of gloves had a significant positive effect on the quantity demanded which shows that the demand for gloves is elastic.