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Question
Demand for a good is less elastic when ______.
Options
Percentage change in price (>) Percentage change in quantity demanded
Percentage change in quantity demanded > Percentage change in price
Percentage change in price = Percentage change in quantity demanded
Demand remains same even with change in price
MCQ
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Solution
Demand for a good is less elastic when Percentage change in price (>) Percentage change in quantity demanded.
Explanation:
Demand is less elastic when the percentage change in quantity demanded is smaller than the percentage change in price. The second describes elastic demand, the third unitary elasticity, and the fourth perfectly inelastic demand.
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