Question

Along the elastic portion of a demand curve, the change in price will be _______ than the change in quantity demanded?

1) greater
2) less
3) equal
4) cannot be determined

Answer 1

In the elastic portion of a demand curve, the change in price is greater than the change in quantity demanded due to the high sensitivity of quantity to price changes.

Step-by-step explanation:

Along the elastic portion of a demand curve, the change in price will be greater than the change in quantity demanded. When the demand is elastic, a small change in price results in a large percentage change in quantity demanded. Conversely, along the inelastic portion of a demand curve, the percentage change in quantity demanded is smaller than the percentage change in price, indicating that the quantity demanded is relatively insensitive to price changes.