Demand is said to be elastic when:
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Correct Answer: Option C
Explanation:
Elastic demand means consumers react strongly to price changes. A small increase in price may lead to a large reduction in quantity demanded. Goods with close substitutes, such as soft drinks or snacks, often have elastic demand because consumers can easily switch to alternatives.
Elastic demand means consumers react strongly to price changes. A small increase in price may lead to a large reduction in quantity demanded. Goods with close substitutes, such as soft drinks or snacks, often have elastic demand because consumers can easily switch to alternatives.