When a small change in price leads to a large change in demand the demand is:

CA Foundation · Business Economics · MTP · January 2026
When a small change in price leads to a large change in demand the demand is:
(A) A. Inelastic
(B) B. Elastic
(C) C. Stagnant
(D) D. Fixed

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Elastic

Topics: Theory of Demand and Supply

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