When the percentage change in quantity demanded is numerically less than the percentage change in price,ceteris paribus,demand is:
A) Elastic.
B) Inelastic.
C) Unitary elastic.
D) Perfectly elastic.

Question

Quizplus · Accepted Answer

When the percentage change in quantity demanded is numerically less than the percentage change in price, it indicates that demand is relatively unresponsive to the change in price or, in other words, demand is inelastic. This would imply that consumers are not very sensitive to changes in the price and would continue to purchase similar quantities of the good even if the price increases.

When the Percentage Change in Quantity Demanded Is Numerically Less