If a large percentage increase in the price of a good results in a small percentage reduction in the quantity demanded of the good, demand is said to be
A) horizontal.
B) relatively inelastic.
C) relatively elastic.
D) income proof.

Question

Quizplus · Accepted Answer

When a large percentage increase in the price of a good results in a small percentage reduction in the quantity demanded of the good, demand is said to be relatively inelastic. This means that the demand for the good is not very responsive to changes in price.

If a Large Percentage Increase in the Price of a Good