If the percentage change in quantity demanded is smaller (in absolute value)than the percentage change in price,then demand is
A)inelastic
B)elastic
C)unit elastic
D)determined by supply
E)inadequate compared to supply

Question

Quizplus · Accepted Answer

If the percentage change in quantity demanded is smaller (in absolute value) than the percentage change in price, it means that the change in price has a relatively smaller effect on the quantity demanded. This is characteristic of an inelastic demand, where changes in price do not have a significant impact on the quantity demanded.

If the Percentage Change in Quantity Demanded Is Smaller (In