What term describes demand that is highly responsive to price changes?

What term describes demand that is highly responsive to price changes?

• A. Inelastic
• B. Price Elasticity
• C. Elastic
• D. Price Floor

Answer: (C)

Elastic describes demand that is highly responsive to price changes. When prices move even a little, the quantity demanded changes a lot, because buyers can easily adjust their purchases—often due to available substitutes, the good being a non-necessity, or enough time to react. The term “price elasticity” refers to the measurement of that responsiveness rather than the description of the demand itself. Inelastic would describe the opposite situation, where price changes barely affect quantity, and a price floor is a policy tool, not a description of demand.

Elastic describes demand that is highly responsive to price changes. When prices move even a little, the quantity demanded changes a lot, because buyers can easily adjust their purchases—often due to available substitutes, the good being a non-necessity, or enough time to react. The term “price elasticity” refers to the measurement of that responsiveness rather than the description of the demand itself. Inelastic would describe the opposite situation, where price changes barely affect quantity, and a price floor is a policy tool, not a description of demand.