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 the consumer no longer prefers the iced tea drink. the demand for tasty treat tea is elastic. the demand for tasty treat tea is inelastic. the 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 the consumer no longer prefers the iced tea drink. the demand for tasty treat tea is elastic. the demand for tasty treat tea is inelastic. the consumer no longer shops at tasty treat tea.

Answer

Brief Explanations:

Elastic demand means quantity demanded changes more than proportionally to a change in price. Here, price rises by 10% and quantity demanded falls by 20%, which is the characteristic of elastic demand.

Answer:

The demand for Tasty Treat Tea is elastic.