What kind of demand is seen when a small change in price produces a large change in demand?
A)Elastic
B)Inelastic
C)Relative
D)Rigid
E)Dynamic

Question

Quizplus · Accepted Answer

The price elasticity of demand is a measure of the responsiveness of demand for a product to change in price. Demand is said to be elastic when a small change in price produces a large change in demand; it is said to be inelastic when a large change in price produces only a small change in demand.

What Kind of Demand Is Seen When a Small Change