Final answer:
True, a relatively flat demand curve signifies high price elasticity, where small price changes cause large changes in the quantity demanded.
Step-by-step explanation:
True. If the demand curve for a good is relatively flat, this indicates that there is a high degree of price elasticity of demand. In this case, a small change in price does indeed result in a relatively large change in the quantity demanded. This high elasticity means that consumers are quite sensitive to price changes, so even minimal price adjustments can lead to significant variations in how much of the good is purchased. When we are at the upper end of a demand curve, where the price is high and the quantity demanded is low, a small change in the quantity demanded represents a larger percentage change than it would at the bottom of the curve where quantity is high and price is low. Therefore, at a flat part of the curve, changes in price have a more substantial impact on quantity demanded.