A demand relationship in which a given percentage change in price will result in a larger percentage change in quantity demanded is
A) elastic.
B) unit-elastic.
C) inelastic.
D) consistent with zero elasticity.

Question

Quizplus · Accepted Answer

When a percentage change in price has a larger percentage change in quantity demanded, it means that consumers are highly responsive to changes in price, leading to a more elastic demand curve. In contrast, when a change in price has little effect on the quantity demanded, it indicates a more inelastic demand curve. Therefore, the correct answer is A) elastic.

A Demand Relationship in Which a Given Percentage Change in Price