A product with an elastic demand means that
A)consumers are relatively insensitive to a change in the quantity demanded.
B)consumers are relatively insensitive to a change in the price of the product.
C)consumers are relatively sensitive to a change in the price of the product.
D)producers are relatively insensitive to a change in the price of the product.
E)producers are relatively sensitive to a change in the quantity demanded.

Question

Quizplus · Accepted Answer

A product with an elastic demand means that consumers are relatively sensitive to a change in the price of the product, meaning a small change in price will result in a larger change in the quantity demanded. This is in contrast to a product with an inelastic demand, where consumers are relatively insensitive to a change in price and the quantity demanded remains more constant.

A Product with an Elastic Demand Means That