If the price of ‘X’ rises by 10 percent and the quantity demanded falls by 10 percent, ‘X’ has

The correct answer is: A. Inelastic demand.

Inelastic demand is a situation in which the quantity demanded of a good or service changes very little in response to a change in price. In other words, consumers are relatively insensitive to changes in price.

In the case of a 10% increase in the price of X, the quantity demanded falls by only 10%. This suggests that demand for X is inelastic.

Here is a brief explanation of each option:

• Unitarily elastic demand is a situation in which the quantity demanded of a good or service changes by the same percentage as the change in price. In other words, consumers are equally sensitive to changes in price.
• Elastic demand is a situation in which the quantity demanded of a good or service changes by a greater percentage than the change in price. In other words, consumers are very sensitive to changes in price.
• Zero elastic demand is a situation in which the quantity demanded of a good or service does not change at all in response to a change in price. In other words, consumers are completely insensitive to changes in price.