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The size of the change in the quantity demanded of a good or service due to change in its price is measured by the elasticity of demand. When the percentage change in the quantity demanded for a good or
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The size of the change in the quantity demanded of a good or service due to change in its price is measured by the elasticity of demand. When the percentage change in the quantity demanded for a good or service is more than the percentage change in price, the demand for that good or service is ________ and price elasticity is ________.

User Ayrx
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1 Answer

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Answer:

Elastic ; greater than 1

Step-by-step explanation:

We know that

Price elasticity of demand = (Percentage change in quantity demanded) ÷ (Percentage change in price) × 100

Since in the question it is given that the percentage change in quantity demanded is more than the percentage change in price that reflects that the price elasticity is elastic that means it is greater than one.

User EKet
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