tasty treat tea is a popular iced tea drink. when the manufacturer begins to use imported tea leaves, the…

tasty treat tea is a popular iced tea drink. when the manufacturer begins to use imported tea leaves, the price rises by 10%, and the quantity demanded falls by 20%. the fact that quantity demanded changed by more than the price change suggests that\nthe consumer no longer prefers the iced tea drink.\nthe demand for tasty treat tea is elastic.\nthe demand for tasty treat tea is inelastic.\nthe consumer no longer shops at tasty treat tea.

tasty treat tea is a popular iced tea drink. when the manufacturer begins to use imported tea leaves, the price rises by 10%, and the quantity demanded falls by 20%. the fact that quantity demanded changed by more than the price change suggests that\nthe consumer no longer prefers the iced tea drink.\nthe demand for tasty treat tea is elastic.\nthe demand for tasty treat tea is inelastic.\nthe consumer no longer shops at tasty treat tea.

Answer

Answer:

The demand for Tasty Treat Tea is elastic.

Brief Explanations:

Elasticity of demand is calculated as the percentage - change in quantity demanded divided by the percentage - change in price. Here, the percentage change in quantity demanded (20%) is greater than the percentage change in price (10%). When the absolute value of the price - elasticity of demand is greater than 1, demand is elastic.