If a product has an elastic demand,this means that:
A)consumers are relatively sensitive to a change in the price of the product.
B)consumers are relatively insensitive to a change in the quantity demanded.
C)consumers are relatively insensitive to a change in the price of the product.
D)producers are relatively insensitive to a change in the price of the product.
E)producers are relatively sensitive to a change in the quantity demanded.

Question

Quizplus · Accepted Answer

Elastic demand means that consumers are relatively sensitive to a change in the price of the product. In other words, a small change in price can lead to a significant change in the quantity demanded by consumers. This can happen when there are many substitute products available in the market or when the product is considered a luxury rather than a necessity.

If a Product Has an Elastic Demand,this Means That