Demand is said to be elastic if:
A)the price of the good responds substantially to changes in demand
B)the supply of the good responds weakly to changes in demand
C)the quantity demanded responds substantially to changes in the quantity supplied of the good
D)the quantity demanded responds substantially to changes in the price of the good

Question

Quizplus · Accepted Answer

Elastic demand means that consumers are very sensitive to changes in the price of the good, resulting in a substantial change in the quantity demanded. This can be seen in situations where a small change in price leads to a large change in quantity demanded, such as when consumers switch from a name-brand product to a cheaper generic version. Therefore, option D is the correct choice.

Demand Is Said to Be Elastic If