Question

When the price elasticity of demand for a good is very elastic, quantity demanded is _____ to a change in price and the demand curve is relatively _____. Group of answer choices

Answer 1

Answer:

1. Responsive

2. Elastic

Explanation:

When the price elasticity of demand for a good is very elastic, quantity demanded is RESPONSIVE to a change in price and the demand curve is relatively ELASTIC.

This is because the price elasticity of demand measures the responsiveness of the quantity demanded to a change in price.

Consequently, as the quantity demanded changes, the demand curve then becomes relatively elastic, by shifting either to the right or left.