If the percentage change in quantity demanded for a product is greater than zero and is smaller than the percentage change in price that caused it, then demand for the good is
A) perfectly inelastic.
B) inelastic.
C) infinitely elastic.
D) unit elastic.
E) elastic.

Question

Quizplus · Accepted Answer

When the percentage change in quantity demanded is less than the percentage change in price, demand is considered inelastic. This means consumers are relatively unresponsive to price changes.

If the Percentage Change in Quantity Demanded for a Product