When the Percentage Change in Quantity Demanded Is Less Than

question 41

Multiple Choice

When the percentage change in quantity demanded is less than the percentage change in price,ceteris paribus,

• A)Demand is elastic.
• B)Demand is inelastic.
• C)Demand is unitary elastic.
• D)Elasticity is impossible to calculate.

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Definitions:

Airline Travel

The process of transporting passengers and cargo by aircraft from one location to another.

Normal Good

A type of good for which demand increases as the income of individuals increases, reflecting a direct relationship between income and demand.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity of it that consumers are willing to purchase at various prices.

Future Price Decline

The expectation that the price of goods or services will decrease in the future, often influencing consumer and business decisions.