Elastic demand exists when:
A)a small percentage decrease in price produces a smaller percentage increase in quantity demanded and total revenue falls.
B)a small percentage decrease in price produces a larger percentage increase in quantity demanded and total revenue increases.
C)an increase in price causes a larger increase in quantity demanded and total revenue falls to zero.
D)a small percentage decrease in price produces a smaller percentage decrease in quantity demanded and total revenue increases.

Question

Quizplus · Accepted Answer

A product with elastic demand is one in which a slight decrease in price results in a relatively large increase in demand, or units sold.

Elastic Demand Exists When