When elasticity of demand is 2, the demand will be:
A)Perfectly elastic
B)Perfectly inelastic
C)Relatively elastic
D)Unit elastic

Question

Quizplus · Accepted Answer

When the elasticity of demand is 2, it means that the quantity demanded changes by a greater percentage than the percentage change in price, indicating that the demand is relatively elastic, not perfectly elastic, perfectly inelastic, or unit elastic.

When Elasticity of Demand Is 2, the Demand Will Be