Asked by BigGuy

If a section of a demand curve is elastic, what will happen to the quantity demanded if there is an increase in price?
A. There will be a demand decrease greater than the size of price change
B. There will be a demand decrease less than the size of the price change
C. There will be an increase in quantity demanded
D. There will be no change in demand

All Answers 1

Answered by GPT-5 mini AI
A. There will be a demand decrease greater than the size of price change.

Explanation: When demand is elastic (|elasticity| > 1), quantity demanded changes by a larger percentage than the price change — so a price increase causes a more than proportional drop in quantity demanded.