Which of the following is NOT characteristic of a good with elastic demand?
A) The absolute price elasticity of demand is less than 1.
B) Total revenue decreases if price is increased.
C) Buyers are relatively sensitive to price changes.
D) The percentage change in quantity demanded is greater than the percentage change in price.

Question

Quizplus · Accepted Answer

A good with elastic demand has a price elasticity of demand greater than 1, meaning that buyers are relatively sensitive to price changes and the percentage change in quantity demanded is greater than the percentage change in price. Additionally, total revenue decreases if price is increased (choice B). Therefore, choice A is not characteristic of a good with elastic demand.

Which of the Following Is NOT Characteristic of a Good