Question

Demand is elastic​ if:________.

a. demand responds​ somewhat, but not a great​ deal, to changes in price. It always has a numerical value between zero and 1.
b. the percentage change in quantity of a product demanded is the same as the percentage change in price in absolute value​ (a demand elasticity of​ 1).
c. the percentage change in quantity demanded is larger than the percentage change in price in absolute value​ (a demand elasticity with an absolute value greater than​ 1).
d. changes in total revenue are dire.

Answer 1

c. the percentage change in quantity demanded is larger than the percentage change in price in absolute value​ (a demand elasticity with an absolute value greater than​ 1).

Step-by-step explanation:

The elasticity of demand is the responsiveness of the quantity demand with respect to the change in price level whether the price increases or not

The formula to compute the Price elasticity of demand is shown below:

Price elasticity of demand = (Percentage change in quantity demanded) ÷ (percentage change in price)

The categorization is shown below:

1. Perfectly inelastic = When elasticity is zero

2. Inelastic = When elasticity is less than one

3. Unitary elastic = When elasticity is equal to one

4. Elastic = When elasticity is more than one

5. Perfectly elastic = When elasticity is in infinity