A change in price results in a greater change in demand

• A. Price inelastic demand
• B. Income elasticity of demand
• C. Discretionary expenditure
• D. Price elastic demand

Answer: (D)

This is about price elasticity of demand—the extent to which quantity demanded responds to a change in price. When a price change causes a bigger percentage change in the quantity demanded, the demand is elastic. In other words, the elasticity magnitude is greater than 1, so consumers react strongly to price moves.

So the description fits elastic demand: a price change leads to a relatively larger change in the amount people buy.

If you compare the other ideas: price inelastic demand means quantity changes little when price changes (elasticity less than 1). Income elasticity of demand measures response to income, not price. Discretionary expenditure is about non-essential spending, not a measure of responsiveness to price.