An increase in demand will cause a relatively small increase in price when
A) the increase in demand is large.
B) demand is highly elastic.
C) supply is highly inelastic.
D) all of the above

Question

Quizplus · Accepted Answer

When demand is highly elastic, consumers are very responsive to price changes, so a large increase in demand will result in a relatively small increase in price.

An Increase in Demand Will Cause a Relatively Small Increase