If a good has a highly elastic demand curve,then:
A)a small percentage change in price will cause a large change in quantity demanded.
B)a small percentage change in price will cause virtually no change in quantity demanded.
C)a large percentage change in price will cause a small change in quantity demanded.
D)any percentage change in price will cause an almost immediate response in quantity demanded.

Question

Quizplus · Accepted Answer

A highly elastic demand curve means that consumers are very responsive to changes in price, so a small percentage change in price will cause a large change in quantity demanded. This is because consumers have many substitute goods available to them and can easily switch to a different product if the price of the original product increases.

If a Good Has a Highly Elastic Demand Curve,then