Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 5 - Elasticity: A Measure of Responsiveness - Exercises - 5.1 The Price Elasticity of Demand - Page 121: 1.4

Answer

If demand is elastic, the percentage change in QUANTITY exceeds the percentage change in PRICE.

Work Step by Step

The demand of a product is elastic when the percentage change in quntity is bigger than the percentage change in price. Sales of products with elastic demand will increases total revenue.
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