Multiple choice

More than one unit demand is also known as

  1. Relatively less elastic demand

  2. Perfectly elastic demand

  3. Relatively more elastic demand

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 It is known as relatively more elastic demand.  In relatively more elastic the change in quantity demanded is more than the change in price. Suppose the price of air - conditioner decreases by 10%, but quantity demanded increases by 20%, thus the change in quantity demanded here is greater than change in price, which is in excess of more than one unit that is 2. Thus it shows that is relatively more elastic demand. 

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