For a given increase in price, _____.
A)a greater elasticity of demand will result in a greater decrease in quantity demanded
B)a greater elasticity of demand will result in a greater decrease in demand
C)a smaller elasticity of demand will result in a greater decrease in quantity demanded
D)a smaller elasticity of demand will result in a smaller decrease in demand
E)a greater elasticity of demand will result in a smaller increase in quantity demanded

Question

Quizplus · Accepted Answer

This is the basic concept of elasticity of demand. When the price increases, if the demand is elastic, the quantity demanded will decrease significantly, whereas if the demand is inelastic, the quantity demanded will decrease only slightly. Therefore, A is the correct answer.

For a Given Increase in Price, _____