The demand is price-elastic when the percentage change in quantity demanded is greater than the percentage change in price for a particular good.

Question

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When the demand for a good is price-elastic, it means that consumers are highly responsive to changes in the price of that good. As a result, a small percentage increase in price will lead to a larger percentage decrease in quantity demanded, and vice versa. This is reflected in the fact that the percentage change in quantity demanded is greater than the percentage change in price.

The Demand Is Price-Elastic When the Percentage Change in Quantity