Suppose the price elasticity of demand for cereal is negative −1.03. if so, then the demand for cereal is (unit-elastic, elastic, inelastic. in another example, assume the price elasticity of demand for a particular magazine is negative −0.72. the demand for the magazine is unit-elastic, elastic, inelastic

The demand for cereal is elastic.

The demand for the magazine is inelastic.

Explanation:

The price elasticity of demand is the degree of responsiveness of quantity demanded to change in price. A negative price elasticity implies that the product is a normal good.

The price elasticity of demand for cereal is −1.03. This means that the demand is price elastic. An elastic demand implies that a change in price will cause more than proportionate change in quantity demanded.

The price elasticity of demand for a particular magazine is −0.72. This means that the demand is price inelastic. An inelastic demand implies that a change in price will cause less than proportionate change in the quantity demanded.

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30

answerthe above statement is (true);