If the percentage change in quantity demanded is greater (in absolute value)than the percentage change in price,then demand
A)determines supply
B)is indeterminate
C)is elastic
D)is inelastic
E)is unit elastic

Question

Quizplus · Accepted Answer

If the percentage change in quantity demanded is greater (in absolute value) than the percentage change in price, it means that consumers are very responsive to changes in price, and even a small change in price can lead to a larger change in quantity demanded. This indicates that demand is elastic, as a small change in price leads to a proportionately larger change in quantity demanded.

If the Percentage Change in Quantity Demanded Is Greater (In