If demand is elastic,then:
A) Quantity demanded is not very responsive to changes in price.
B) Quantity demanded is very responsive to changes in price.
C) Consumer spending does not respond to changes in income.
D) Total revenue falls in response to a price decrease.

Question

Quizplus · Accepted Answer

If demand is elastic, it means that a change in price will result in a relatively larger change in the quantity demanded. In other words, consumers are very responsive to changes in price and are likely to buy more if the price decreases and less if the price increases. This will result in a significant change in total revenue as well.

If Demand Is Elastic,then