Demand is said to be elastic, if:

CA Foundation · Business Economics · PYQS · September 2025
Demand is said to be elastic, if:
(A) A. Elasticity is one (E p = 1)
(B) B. Elasticity is greater than one (E p > 1)
(C) C. Elasticity is less than one (E p < 1)
(D) D. Elasticity is zero (E p = 0)

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Elasticity is greater than one (E p > 1)

Topics: Theory of Demand and Supply

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