Demand is said to be _____ 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

When demand is elastic, it means that a small change in price (increase or decrease) will result in a relatively larger change in the quantity demanded. This is because consumers are highly sensitive to the price changes and may alter their consumption behavior accordingly. In contrast, inelastic demand means that a change in price will have a relatively smaller impact on the quantity demanded, as consumers are less responsive to the change.

Demand Is Said to Be _____ When a Small Change