if a given change in price brings a proportionately larger change in quantity demanded, the...
ECONOMICS
WAEC 2015
if a given change in price brings a proportionately larger change in quantity demanded, the
- A. demand is relatively price elastic
- B. demand is relatively price inelastic
- C. price elasticity of demand is unitary
- D. price elasticity of demand is constant
Correct Answer: A. demand is relatively price elastic
Explanation
Price elasticity is a measure of the responsiveness of demand or supply of a good or service to changes in price. The price elasticity of demand measures the ratio of the proportionate change in quantity demanded to the proportionate change of the price .
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