If the percentage change in the price of a good is less than the resulting percentage change in the quantity demanded of that good, then the demand for that good is:
A)elastic.
B)inelastic.
C)unit elastic.
D)perfectly inelastic.

Question

Quizplus · Accepted Answer

If the percentage change in quantity is greater than the percentage change in price, then the price elasticity of demand will be greater than one, implying that demand is elastic.

If the Percentage Change in the Price of a Good