-When the price elasticity of demand is small in magnitude,a _____ increase in the price leads to a _____ reduction in the amount purchased and the demand curve is relatively ______.
A) Slight; substantial; steep
B) Slight; slight; flat
C) Large; slight; steep
D) Slight; substantial; flat

Question

-When the price elasticity of demand is small in magnitude,a _____ increase in the price leads to a _____ reduction in the amount purchased and the demand curve is relatively ______.
A) Slight; substantial; steep 
B) Slight; slight; flat 
C) Large; slight; steep 
D) Slight; substantial; flat

Quizplus · Accepted Answer

When the price elasticity of demand is small in magnitude, it means that the quantity demanded is relatively unresponsive to price changes. Therefore, a large increase in price leads to only a slight reduction in the amount purchased, indicating that the demand curve is relatively steep.

-When the Price Elasticity of Demand Is Small in Magnitude,a