Economics Semester Exam

Question

8 of 318 of 31 Items
Question
If a section of a demand curve is elastic, what will happen to the quantity demanded if there is an increase in price?(1 point)
Responses

There will be a demand decrease less than the size of the price change.
There will be a demand decrease less than the size of the price change.

There will be a demand decrease greater than the size of price change.
There will be a demand decrease greater than the size of price change.

There will be an increase in quantity demanded.
There will be an increase in quantity demanded.

There will be no change in demand.

Answer 1

If a section of a demand curve is elastic, this means that consumers are sensitive to changes in price. Therefore, if there is an increase in price, the quantity demanded will decrease, and the decrease in quantity demanded will be greater than the size of the price change.

Thus, the correct response is:

There will be a demand decrease greater than the size of the price change.