If a huge percentage change in price leads to a small percentage change in quantity demanded, then demand is said to be inelastic.

Question

Quizplus · Accepted Answer

This statement correctly defines the concept of price elasticity of demand, where a low value of price elasticity of demand (less than 1) indicates inelastic demand. A big change in price would only bring a small change in the quantity demanded, meaning that the demand is not very responsive to changes in price.

If a Huge Percentage Change in Price Leads to a Small