When the Percentage Change in the Quantity Demanded Is Less

question 283

Multiple Choice

When the percentage change in the quantity demanded is less than the percentage change in price,then demand is

• A) inelastic.
• B) unit elastic.
• C) elastic.
• D) irrelevant.
• E) undefined.

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Definitions:

Units

Basic quantities or measurements, such as items sold or produced, used for analysis or calculation in various contexts.

Unit Elastic

A scenario in demand or supply where a percentage change in price leads to an equal percentage change in quantity demanded or supplied.

Tax Lowered

The reduction of the rates at which individuals or corporations are taxed by the government.

Demand and Supply

Refers to the economic model that determines the price of goods in a market based on the quantity demanded by consumers and the quantity supplied by producers.