If a specific segment of a demand curve is price elastic, then we know that anywhere along that segment, the
A) percentage change in the quantity demanded exceeds one
B) percentage change in quantity demanded exceeds the percentage change in price
C) percentage change in price exceeds the percentage change in quantity demanded
D) the change in quantity demanded exceeds the change in price
E) the good has no close substitutes

Question

Quizplus · Accepted Answer

When a demand curve is price elastic, it means that the percentage change in quantity demanded is greater than the percentage change in price. This is the definition of price elasticity of demand being greater than one.

If a Specific Segment of a Demand Curve Is Price