Question

Price of jeans falls from ₹1000 to ₹700 and quantity demanded increases from 10 to 25 units. What type of demand does this represent?

Options

• Inelastic demand

• Perfectly inelastic demand

• Elastic demand

• Unitary elastic demand

Answer 1

Elastic demand

Explanation:

When price fell, total expenditure increased from ₹10,000 to ₹17,500, meaning people bought significantly more. This indicates elastic demand (Ed > 1).