Demand is said to be price elastic at a point on a demand curve if a
A. 1 percent rise in price reduces the quantity demanded by more than 1 percent.
B. 1 percent rise in price reduces the quantity demanded by less than 1 percent.
C. 1 percent rise in price reduces the quantity demanded by more than 10 percent.
D. 10 percent rise in price reduces the quantity demanded by less than 10 percent.
Answer: A
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