If, for a given percentage increase in price, quantity demanded falls by a proportionately smaller percentage, then demand is
A)unit elastic.
B)perfectly elastic.
C)relatively inelastic.
D)relatively elastic.

Question

Quizplus · Accepted Answer

When there is a percentage increase in the price of a product and the quantity demanded decreases by a proportionately smaller percentage, it is an indication that demand is relatively inelastic. This means that consumers are less responsive to changes in price and are still willing to buy the same quantity of the product even though the price has increased.

If, for a Given Percentage Increase in Price, Quantity Demanded