An elastic demand curve is one for which:
A)the absolute change in price is smaller than the absolute change in quantity demanded
B)a given percentage change in price causes a larger percentage change in quantity demanded
C)the absolute change in price is bigger than the absolute change in quantity demanded
D)a given percentage change in price causes a smaller percentage change in quantity demanded
E)the absolute changes in price and quantity demanded are the same

Question

Quizplus · Accepted Answer

An elastic demand curve is characterized by a larger percentage change in quantity demanded in response to a given percentage change in price. This means that if the price of a good increases by 10%, the quantity demanded for that good will decrease by more than 10%. Alternatively, if the price of a good decreases by 10%, the quantity demanded for that good will increase by more than 10%.

An Elastic Demand Curve Is One for Which