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The Law of Demand

Question 1 • RAIL NCAA OC Economics 2027

If the quantity demanded of a good changes drastically when the price changes, the good is relatively .

Answer
A
inelastic
B
elastic

Explanation

A good is elastic when the quantity demanded responds substantially to a change in price. Since demand changes drastically as price changes, the good is relatively elastic. Inelastic demand means quantity demanded changes only slightly.

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