If demand is elastic,then a given percentage change in price will bring about a(n)__________ percentage change in quantity __________.
A) larger; demanded
B) smaller; demanded
C) equal; supplied
D) smaller; supplied
E) equal; demanded

Question

Quizplus · Accepted Answer

When demand is elastic, a small change in price will result in a larger change in the quantity demanded. This is because consumers are very responsive to changes in price and will significantly alter their purchasing behavior in response to even small price changes. As a result, a given percentage change in price will bring about a larger percentage change in quantity demanded.

If Demand Is Elastic,then a Given Percentage Change in Price