Microeconomics. Inelastic, elastic , unit elastic or none?

A 5 % increase in the price of sugar causes th equanity demanded to fall by 15%.The demand for sugar is?

a. Inelastic
b.elastic
c.unit elastic
d. none of the above

Answer:
b.
Isn't this obvious? The price of sugar rose by just 5%, and people started demanding 15% less. There was a large change in demand following a relatively small price increase. Therefore demand is (very) elastic, it responds a lot for a given change in price.
Price elasticity of demand in this case would be 3. Recall: Ed = %change in Qd divided by %change in price (ignore signs). In this case 15 divided by 5 is Ed of 3. Since the Ed value is greater than 1, we conclude elastic. The last guy who answered you was correct. Do you not notice that price only changed by 5% and behavior was altered in a big way---this means there WAS consumer sensitivity or responsiveness to the price change. Elastic once again.

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