Demand is said to be price elastic if
A)the price of the good responds substantially to changes in demand.
B)demand shifts substantially when income or the expected future price of the good changes.
C)buyers do not respond much to changes in the price of the good.
D)buyers respond substantially to changes in the price of the good.

Question

Quizplus · Accepted Answer

Demand is considered price elastic when the quantity demanded changes significantly in response to changes in price. This means that consumers are sensitive to price changes, and a small change in price leads to a large change in the quantity demanded.

Demand Is Said to Be Price Elastic If