When the percent change in quantity demanded is lower than the percent change in price demand is?

Answer 1

Answer: Nothing meaningful. Your question construction is badly formed.

Note:

Your question is NOT understandable. Put into equation form, you seem to be asking what happens when:

Dq %chng < Dp % chng

If both demands (i.e. Dq & Dp) are customer demands, then:

if we use: Dq=10% < Dp=15%

then we don't see anything useful from this comparison since we don't know if if either demand is increasing, decreasing, unchanged, or either are moving in opposite directions.

IF you mean what happens to Dq if Dp does the following:

- If Dp remains unchanged, then Dq will probably remain unchanged (unless a <= cost alternative becomes available).

- If Dp is increased and there is no other suitable alternatives available, then Dq will likely decrease in the short term & then remain the same in the medium to long run until increase in population translate into higher demand.

- If Dp is reduced, then Dq will likely increase as the new price becomes affordable to more buyers... until the market is saturated. At the point of market saturation, price become irrelevant because few people will buy more than 2 of anything (1 for use & 1 for a spare).