If the demand for bacon is relatively elastic, a 10 percent decline in the price of bacon will
A)decrease the amount demanded by more than 10 percent.
B)increase the amount demanded by more than 10 percent.
C)decrease the amount demanded by less than 10 percent.
D)increase the amount demanded by less than 10 percent.

Question

Quizplus · Accepted Answer

When demand is relatively elastic, a decrease in price leads to a proportionally larger increase in the quantity demanded. Thus, a 10 percent decline in the price of bacon will increase the amount demanded by more than 10 percent.

If the Demand for Bacon Is Relatively Elastic, a 10