Homework SourseThe demand for a good is said to be when the percentage chan
The demand for a good is said to be___ when the percentage change in quantity demand is greater than the percentage change in price
-perfect elastic
-inelastic
-unit elastic
-elastic
-perfectly inelastic
The demand for a good is said to be___ when the percentage change in quantity demand is greater than the percentage change in price
-perfect elastic
-inelastic
-unit elastic
-elastic
-perfectly inelastic
-perfect elastic
-inelastic
-unit elastic
-elastic
-perfectly inelastic
Solution
The price elasticity of demand measure the responsiveness of the % change in the quantity demand of a good due to % change in the price of a good.
When change in quantity demand of a good is more responsive due to change in the price, it has elastic demand.
Hence it can be said that the demand for a good is said to be elastic when the percentage change in the quantity demand of a good is more than the percentage change in the price of a good.
Hence option fourth is the correct answer.
Option fourth is elastic.
