______demand means that each change in price causes are latively larger change in quantity demand?

Question

A)elactic
b)inelastic
c)dependent
d)substitute

Answer 1

a) Elastic

The Price Elasticity of Demand (commonly known as just price elasticity) measures the rate of response of quantity demanded due to a price change. The higher the price elasticity, the more sensitive consumers are to price changes. A very high price elasticity suggests that when the price of a good goes up, consumers will buy a great deal less of it and when the price of that good goes down, consumers will buy a great deal more. A very low price elasticity implies just the opposite, that changes in price have little influence on demand.

The 2 attached sites may help you to understand this topic more.