When the percentage change in the quantity demanded is less than the percentage change in price,then demand is
A) inelastic.
B) unit elastic.
C) elastic.
D) irrelevant.
E) undefined.

Question

Quizplus · Accepted Answer

When the percentage change in the quantity demanded is less than the percentage change in price, it means that the demand is insensitive to the price change. In other words, customers are not very responsive to changes in price, and they will still purchase the same quantity of the product, even if the price goes up. This type of demand is called inelastic.

When the Percentage Change in the Quantity Demanded Is Less