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2. When percentage change in quantity demanded is greater than percentage change in price then, a) Consumers are relatively sensitive to price changes b) Demand is inelastic c) Coefficient of price elasticity
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2. When percentage change in quantity demanded is greater than percentage change in price then,

a) Consumers are relatively sensitive to price changes
b) Demand is inelastic
c) Coefficient of price elasticity is less than one
d) All of the above
e) None of the above​

User Joel Friedlaender
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1 Answer

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Answer: A. Consumers are relatively sensitive to price changes

Step-by-step explanation:

In a situation whereby the percentage change in quantity demanded is greater than the percentage change in price then, we can say that the demand for the product is elastic.

When demand is elastic, the consumers are relatively sensitive to price changes and the coefficient of price elasticity is greater than 1.

User Amol Chakane
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