Question

Dan sells newspapers. Dan says that a12 percent increase in the price of a newspaper will decrease the quantity of newspapers demanded by 10 percent. According to​ Dan, what is the elasticity of demand for​ newspapers

According to​ Dan, the demand for newspapers is​ ______

Answer 1

According to Dan, the demand for newspapers is inelastic.

Step-by-step explanation:

The elasticity of demand for newspapers can be calculated using the formula:

The elasticity of demand = Percentage change in quantity demanded / Percentage change in price

According to Dan's statement, a 12% increase in the price of a newspaper will lead to a 10% decrease in the quantity demanded. Plugging these values into the formula:

Elasticity of demand = -10% / 12% = -0.833

Therefore, according to Dan, the demand for newspapers is inelastic.