Asked by
Ivy Mae Decena
on Dec 11, 2024
Verified
If a large percentage increase in the price of a good results in a small percentage reduction in the quantity demanded of the good, demand is said to be
A) of unitary elasticity.
B) relatively inelastic.
C) relatively elastic.
D) perfectly elastic.
Relatively Inelastic
Relatively inelastic describes a scenario where the demand or supply for a product changes only slightly in response to changes in price.
Unitary Elasticity
A situation in which the percentage change in quantity demanded or supplied is equal to the percentage change in price.
Percentage Increase
A measurement that calculates the degree to which a value has risen compared to its previous value, expressed as a percentage.
- Acknowledge the consequences of price shifts on the demand for goods.
Verified Answer
PP
Learning Objectives
- Acknowledge the consequences of price shifts on the demand for goods.