Economics WAEC

If a given change in price brings a proportionately larger change in quantity demanded, the?

A. demand is relatively prices elastic
B. demand is relatively prices inelastic
C. price elasticity of demand is unitary
D. price elasticity of demand is constant

Correct Answer: Option A

A. demand is relatively prices elastic

Explanation

Price elasticity is a measure of the responsiveness of demand or supply of a good or service to changes in price. The price elasticity of demand measures the ratio of the proportionate change in quantity demanded to the proportionate change of the price.

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