ECONOMICS (CBSE/UGC NET)

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: -When the percentage change in quantity demanded is larger than the percentage change in price, demand is said to be (c) price elastic. If the percentage change in quantity demanded is larger than the percentage change in price, it means that the quantity demanded is highly responsive to changes in price.

Detailed explanation-3: -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-4: -When the percentage change in price is greater than the resulting percentage change in quantity demanded: an increase in price will increase total revenue.

Detailed explanation-5: -When percentage change in quantity equals percentage change in price, magnitude of elasticity of demand is equal to 1. This is the situation of unit elasticity.