Which of the following is an example of an elastic demand situation?
A) Demand rises 4% if price falls 6%
B) Demand falls 8% when price increases 5%
C) Demand rises 7% if price falls 10%
D) Demand falls 7% when price increases 9%

Question

Quizplus · Accepted Answer

Elastic demand occurs when the percentage change in quantity demanded is greater than the percentage change in price. In option B, the demand falls by 8% when the price increases by 5%, indicating elasticity.

Which of the Following Is an Example of an Elastic