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

When a small change in price produces a large change in demand, it is known as elastic demand. This means that consumers are highly sensitive to changes in price and will adjust their purchasing behavior accordingly. In contrast, inelastic demand occurs when a change in price has little effect on the level of demand, indicating that consumers are less sensitive to price. The other choices, such as relative demand, rigid demand, and dynamic demand, are not commonly used economic terms to describe demand elasticity.

What Kind of Demand Is Seen When a Small Change