Answer:
The correct answer is letter "A": larger; demanded.
Explanation:
Elasticity is the characteristic of goods and services by which their quantity demanded changes in proportion to the change in prices. Elasticity is calculated by dividing the percentage change in the quantity demanded by the percentage change in price.
If the result is equal to or greater than one (1), the demand for the product is elastic, meaning a minimum change in price causes a greater change in quantity demanded. If the result is lower than 1, the demand is inelastic which implies that changes in the price of a product almost do not change the quantity demanded.
