The demand for a good is said to be _____ when the percentage change in quantity demanded is greater than the percentage change in price.
A)perfectly elastic
B)inelastic
C)unit elastic
D)elastic
E)perfectly inelastic

Question

Quizplus · Accepted Answer

Inelasticity refers to the situation where the change in price of a good does not have a significant effect on the quantity of the good demanded by consumers. On the other hand, elasticity refers to the situation where the change in price of a good has a significant effect on the quantity of the good demanded by consumers. Therefore, when the percentage change in quantity demanded is greater than the percentage change in price, the demand for the good is said to be elastic.

The Demand for a Good Is Said to Be _____