ECONOMICS
DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Perfectly elastic
|
|
|
perfectly inelastic
|
|
|
elastic
|
|
|
inelastic
|
Detailed explanation-1: -If the percentage change in quantity demanded is greater than the percentage change in price, demand is said to be price elastic, or very responsive to price changes.
Detailed explanation-2: -Demand is elastic when the percentage change in quantity demanded is greater than the percentage change in price, so the price elasticity is greater than 1 in absolute value. A measure of how much one economic variable responds to changes in another economic variable.
Detailed explanation-3: -The price elasticity of demand is the percentage change in the quantity demanded of a good or service divided by the percentage change in the price. The price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price.
Detailed explanation-4: -Answer and Explanation: 1) When the percentage change in the quantity demanded is less than the percentage change in price, then demand is C. inelastic.
Detailed explanation-5: -When percentage change in quantity demanded is equal to the percentage change in price, the elasticity of demand is unitary elastic.