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Competition and Free Enterprise

Question 2 • 2102320-Economics HONORS - Edgenuity Teacher

If the quantity demanded for an item increases significantly when the price decreases, the demand for the good is .

Answer
A
elastic
B
inelastic

Explanation

Demand is elastic when buyers respond significantly to a change in price. Since the quantity demanded rises significantly as the price decreases, the good has elastic demand. Inelastic demand would mean quantity demanded changes only a little when price changes.

AI-written and checked against the verified answer.

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