If the demand for a good is elastic,then
A) people do not change the quantity they demand when the price of the good changes.
B) a change in price leads to a smaller percentage change in the quantity demanded.
C) people substantially decrease the quantity of the good they buy if its price increases by a small percentage.
D) a change in the quantity demanded is smaller than the change in price.
E) the quantity demanded divided by the price exceeds 1.00.

Question

Quizplus · Accepted Answer

When demand is elastic, a small percentage increase in price leads to a substantial decrease in the quantity demanded, as consumers are more sensitive to price changes and can easily switch to alternatives.

If the Demand for a Good Is Elastic,then