Re: JNU SIS 2012

Posted by ishita1793 on May 01, 2014; 6:25pm
URL: http://discussion-forum.276.s1.nabble.com/JNU-SIS-2012-tp7588140p7588187.html

Suppose the elasticity of demand for an iPod is -3.5. This means that
(a) the demand for iPods is inelastic
(b) the demand curve for iPods is very steep.
(c) 10 percent increase in the price of iPods will cause quantity demanded to rise
by 35%.
(d) 10 percent increase in the price of iPods will cause quantity demanded to fall
by 35%.
 
shouldn't the answer be (a) ??