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)

Question

Responses

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

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 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 no change in demand.

Answer 1

If a section of a demand curve is elastic, this means that the quantity demanded is highly responsive to price changes. Therefore, if there is an increase in price, the quantity demanded will decrease by a larger percentage than the percentage increase in price.

The correct response is:

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