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

Question

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

Quizplus · Accepted Answer

A greater elasticity of demand means that consumers are more sensitive to a change in price, and as a result, a given increase in price will lead to a larger decrease in quantity demanded (i.e. greater response to the price change). Therefore, the correct answer is C - decrease in quantity demanded.

For a Given Increase in Price, a Greater Elasticity of Demand