If demand is price elastic
A) a 1 percent decrease in the price leads to an increase in the quantity demanded that exceeds 1 percent.
B) a 1 percent increase in the price leads to an increase in the quantity demanded that exceeds 1 percent.
C) a 1 percent decrease in the price leads to a decrease in the quantity demanded that is less than 1 percent.
D) the price is very sensitive to any shift of the supply curve.

Question

Quizplus · Accepted Answer

When demand is price elastic, a small change in price results in a larger percentage change in quantity demanded.

If Demand Is Price Elastic