Demand tends to be more elastic when:
A) price is high and more inelastic when price is low.
B) price is low and more inelastic when price is high.
C) demand is perfectly inelastic.
D) the quantity demanded is larger.

Question

Quizplus · Accepted Answer

Demand tends to be more elastic when the price is high because consumers are more sensitive to price changes and may find alternatives or reduce consumption. When prices are low, demand is more inelastic as the price changes do not significantly affect the quantity demanded.

Demand Tends to Be More Elastic When