Question

An economist recently estimated that for every 1% increase in the price of french fries at fast-food restaurants, 0.44% fewer french fries are sold. This indicates that the demand for fast-food french fries is _______.

Answer 1

correct fill up is Inelastic

Step-by-step explanation:

given data

increase in price of french fries = 1%

fewer french fries sold = 0.44%

solution

we know that when change in percentage of the quantity demanded in smaller than that of price

so that there the price of elasticity of demand for the good is relatively inelastic

and here increase in price of french fries is 1%

as that demand for fast-food french fries is Inelastic

so correct answer is Inelastic