Demand is elastic if
A) consumers respond strongly to changes in the product's price.
B) a large percentage change in price brings about a small percentage change in quantity demanded.
C) a small percentage change in price brings about a small percentage change in quantity demanded.
D) the quantity demanded is not responsive to price changes.
E) the demand curve is vertical.

Question

Quizplus · Accepted Answer

Elastic demand means that consumers are sensitive to changes in price, and will respond strongly by either decreasing or increasing their quantity demanded depending on the price change. This means that a small percentage change in price will bring about a large percentage change in quantity demanded.

Demand Is Elastic If