If a 2 per cent change in price leads to a ________ per cent change in the quantity demanded, then demand is ________.
A) 3; inelastic
B) 2; elastic
C) 0; perfectly elastic
D) 1; inelastic
E) 1; unit elastic

Question

Quizplus · Accepted Answer

If a 2 percent change in price leads to a 1 percent change in the quantity demanded, the percentage change in quantity demanded is less than the percentage change in price, indicating that demand is inelastic.

If a 2 Per Cent Change in Price Leads to a ________