If a large percentage change in price leads to a smaller percentage change in quantity demanded,the result is a:
A) very elastic demand.
B) less elastic demand.
C) low magnitude of response.
D) high magnitude of response.

Question

Quizplus · Accepted Answer

If a large percentage change in price leads to a smaller percentage change in quantity demanded, it indicates a less elastic demand. In this scenario, the change in price had a relatively smaller impact on the quantity demanded. A very elastic demand would see a large change in quantity demanded in response to even a small change in price. The terms "low magnitude of response" and "high magnitude of response" are not commonly used in economics, and do not provide useful information to answer this question.

If a Large Percentage Change in Price Leads to a Smaller