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The Elasticity Is the Ratio of the Percentage Change in the Quantity

Question 19

Multiple Choice

The elasticity is the ratio of the percentage change in the quantity divided by the percentage change in the price. Which of the following statements) is true about elasticity?


A) The bigger the percentage change in quantity relative to the percentage change in price, the more elastic is demand.
B) When quantity changes by more than price, the demand is said to be inelastic.
C) When price changes by more than quantity, the demand is said to be elastic.
D) When quantity changes by more than price, the demand is said to be elastic.
E) both A and D

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