When the percentage change in quantity demanded is greater than the percentage change in price that brought it about, demand is said to be
A) elastic.
B) inelastic.
C) unit elastic.
D) unelastic.
E) zero elastic.

Question

Quizplus · Accepted Answer

When the percentage change in quantity demanded is greater than the percentage change in price, demand is considered to be elastic. This means that consumers are highly responsive to changes in price and may choose to purchase more or less of the product based on the price change. This is often the case for luxury items or non-essential goods, where consumers have more flexibility to adjust their purchasing behavior based on price changes.

When the Percentage Change in Quantity Demanded Is Greater Than