If the percentage change in price is 10 percent and the demand is elastic,then the percentage change in the quantity demanded
A) is greater than 0 percent but less than 10 percent.
B) is larger than 10 percent.
C) equals 0 percent.
D) equals 10 percent.
E) More information is needed to determine the magnitude of the change in the quantity demanded.

Question

Quizplus · Accepted Answer

When the demand is elastic, a 10% increase in price would result in a greater than 10% decrease in the quantity demanded. Therefore, the percentage change in the quantity demanded would be larger than 10%.

If the Percentage Change in Price Is 10 Percent and the Demand