Demand is said to be elastic when the: Group of answer choicespercentage change in quantity demanded is less than the percentage change in price.percentage change in quantity demanded is greater than the percentage change in price.change in quantity demanded is less than the change in price.change in quantity demanded is greater than the change in price.

If the quantity demanded of a good is sensitive to a change in the price of that good, demand is said to be elastic.Question 5AnswerTrueFalse

The price elasticity of demand is defined as the percentage change in the price of that good divided by the percentage change in quantity demanded for that good.Question 1AnswerTrueFalse

What does the term elastic demand mean?Multiple ChoiceQuantities demanded which are not very responsive to a change in price.The responsiveness of quantity demanded to a change in price.An elasticity coefficient which is equal to one.Quantities demanded which are quite responsive to a change in price.The responsiveness of price to a change in quantity demanded.

Price elasticity of demand reveals how responsive the change in quantity demanded is to a change in price

For instance, if the price of a generic brand of cereal increases by 10%, and the quantity demanded decreases by exactly 10%, then the demand is unit elastic. This implies that consumers are adjusting their purchases precisely in response to price changes.