If consumers' response to a price change is a relatively large change in the quantity demanded, then the price elasticity of demand is _____, and demand is considered to be:
A) less than one; inelastic.
B) greater than one; inelastic.
C) less than one; elastic.
D) greater than one; elastic.

Question

Quizplus · Accepted Answer

When the quantity demanded changes significantly in response to a price change, the price elasticity of demand is greater than one, indicating that demand is elastic.

If Consumers' Response to a Price Change Is a Relatively