If demand changes considerably, with a small change in price, the demand is said to be ________.
A) unit elastic
B) elastic
C) inelastic
D) marginal
E) strained

Question

Quizplus · Accepted Answer

When a small change in price leads to a considerable change in demand, it is said to be elastic. This means that consumers are sensitive to changes in price and are likely to switch to substitute goods or services if the price increases. Therefore, the demand for the product is more likely to respond to changes in price.

If Demand Changes Considerably, with a Small Change in Price