If a small percentage increase in the price of a good greatly reduces the quantity demanded for that good, the demand for that good is
A) income inelastic.
B) price inelastic.
C) price elastic.
D) unit price elastic.
E) income elastic.

Question

Quizplus · Accepted Answer

If a small percentage increase in price greatly reduces the quantity demanded, this means that the price elasticity of demand is high, or in other words, the demand is price elastic.

If a Small Percentage Increase in the Price of a Good