Elastic demand is the type in which a change in price?

A. brings about greater change in quantity of goods demanded
B. of a commodity leads to little or no change in demand
C. leads to equal change in commodity demanded
D. may not change the demand of quantity of commodity.

Correct Answer:

Option A – brings about greater change in quantity of goods demanded

Explanation

Elastic demand occurs when the price of a good or service has a big effect on consumers’ demand. If the price goes down just a little, consumers will buy a lot more. If prices rise just a bit, they’ll stop buying as much and wait for prices to return to normal.