All of the following statements except one are correct concerning a product which has an elastic demand.Which is the exception?
A)Any relative change in price is greater than the relative change in quantity.
B)Buyers are relatively sensitive to price changes.
C)The elasticity coefficient is greater than one.
D)Total revenue rises if price decreases.

Question

Quizplus · Accepted Answer

For a product with elastic demand, the relative change in quantity demanded is greater than the relative change in price, meaning consumers are very responsive to price changes. This is opposite to what option A states.

All of the Following Statements Except One Are Correct Concerning