Final answer:
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.