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When percentage change in demand for a commodity is less than percentage change in its price, then demand is said to be
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- Highly elastic
- Inelastic
- Relatively elastic
- Perfectly inelastic
- Highly elastic
Correct Option: B
When the percentage change in quantity demanded is less than the percentage change in price, then the demand for the commodity is said to be inelastic. Price elasticity of demand refers to the degree of responsiveness of quantity demanded to change in price.
