New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    What type of demand occurs when a small change in price

    leads to a significantly larger change in quantity demanded?
    A Unitary Elastic Demand Correct Answer Incorrect Answer
    B Relatively Inelastic Demand Correct Answer Incorrect Answer
    C Perfectly Elastic Demand Correct Answer Incorrect Answer
    D Relatively Elastic Demand Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Relatively elastic demand occurs when a small change in price results in a significantly larger change in the quantity demanded. Consumers are highly responsive to price changes, causing demand to be relatively elastic.

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