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lutik1710 [3]
3 years ago
15

If demand for a given good is elastic, then a given percentage change in price will bring about a(n) __________ percentage chang

e in quantity __________.
Business
1 answer:
Volgvan3 years ago
8 0

Answer:

The correct answer is letter "A": larger; demanded.

Explanation:

Elasticity is the characteristic of goods and services by which their quantity demanded changes in proportion to the change in prices. <em>Elasticity is calculated by dividing the percentage change in the quantity demanded by the percentage change in price.  </em>

<u><em>If the result is equal to or greater than one (1), the demand for the product is elastic, meaning a minimum change in price causes a greater change in quantity demanded</em></u>. If the result is lower than 1, the demand is inelastic which implies that changes in the price of a product almost do not change the quantity demanded.

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