If quantity demanded responds substantially to a relatively small change in price, demand is:
A)price-elastic.
B)price-inelastic.
C)positively sloped.
D)insensitive to changes in price.

Question

Quizplus · Accepted Answer

If quantity demanded responds substantially to a relatively small change in price, demand is considered price-elastic. This means that consumers are price sensitive and will alter their purchasing behavior based on changes in price.

If Quantity Demanded Responds Substantially to a Relatively Small Change