If demand is elastic,
A)then a 1% decrease in price leads to a rise in quantity of greater than 1%.
B)then a 1% decrease in price leads to a rise in quantity of less than 1%.
C)then a 1% decrease in prices leads to a rise in quantity of 1%.
D)then a 1% decrease in price leads to a fall in quantity greater than 1%.

Question

Quizplus · Accepted Answer

Elastic demand means a change in price results in a greater change in quantity demanded. Therefore, a 1% decrease in price will lead to a rise in quantity demanded of greater than 1%.

If Demand Is Elastic