If potential purchasers of a currency are very sensitive to changes in the value of that currency,that currency is said to have:
A)low demand elasticity.
B)high demand elasticity.
C)low demand.
D)high demand.

Question

Quizplus · Accepted Answer

High demand elasticity means that potential purchasers of a currency are very sensitive to changes in its value. In other words, small changes in the price of the currency will cause a large change in the quantity demanded.

If Potential Purchasers of a Currency Are Very Sensitive to Changes