If demand changes greatly with a small change in price,we say the demand is ________.
A)inelastic
B)variable
C)elastic
D)value-based
E)fixed

Question

Quizplus · Accepted Answer

An elastic demand means that a small change in price will significantly affect the quantity demanded by consumers. This implies that consumers are sensitive to price changes and will reduce their demand for a product if the price increases even slightly. This is often the case for luxury items or goods that have close substitutes readily available in the market.

If Demand Changes Greatly with a Small Change in Price,we