If a large percentage drop in the price level results in a small percentage increase in the quantity demanded,
A)demand is inelastic.
B)demand is elastic.
C)demand is unit elastic.
D)the price elasticity of demand is close to infinity.
E)the price elasticity of demand is zero.

Question

Quizplus · Accepted Answer

When a large percentage drop in the price level results in a small percentage increase in the quantity demanded, it indicates that demand is not very responsive to price changes. This means that demand is inelastic.

If a Large Percentage Drop in the Price Level Results