Question

If the demand for umbrellas is price elastic, Group of answer choices a percentage change of...

If the demand for umbrellas is price elastic,

Group of answer choices

a percentage change of quantity demanded of umbrellas will be greater than the percentage change of price

a percentage change of quantity demanded of umbrellas will be less than the percentage change of price

a percentage change of quantity demanded of umbrellas will be equal to the percentage change of price

no change of quantity demanded of umbrellas will happen as a result of a change in price

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Homework Answers

Answer #1

Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded or supplied divided by the percentage change in price.

Elastic demand or supply curves indicate that the quantity demanded or supplied responds to price changes in a greater than proportional manner. So If the demand for umbrellas is price elastic, then a percentage change of quantity demanded of umbrellas will be greater than the percentage change of price.

So A part is a correct answer

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