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The demand for a good is said to be___ when the percentage change in quantity demand...

The demand for a good is said to be___ when the percentage change in quantity demand is greater than the percentage change in price
-perfect elastic
-inelastic
-unit elastic
-elastic
-perfectly inelastic
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Answer #1

The price elasticity of demand measure the responsiveness of the % change in the quantity demand of a good due to % change in the price of a good.

When change in quantity demand of a good is more responsive due to change in the price, it has elastic demand.

Hence it can be said that the demand for a good is said to be elastic when the percentage change in the quantity demand of a good is more than the percentage change in the price of a good.

Hence option fourth is the correct answer.

Option fourth is elastic.

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