If the change in demand for a commodity is at a faster rate than change in the price of the commodity, the demand is?

Perfectly inelastic

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Elastic

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Perfectly elastic

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Inelastic

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Perfectly elastic
Perfect elasticity of demand states that if the price changes by 20% then the change in the quantity demanded is higher than that for eg 40%. One best example of it could be the demand for luxury goods, a smaller change in price could lead to a larger change in quantity demanded.

Suggest Corrections

Similar questions

When the quantity demanded does not change as a result of change in the price of a commodity, the demand of that commodity is called

Join BYJU'S Learning Program