If the quantity demanded increases by 20 percent in response to a 10 percent decrease in price, demand is classified as

A) unstable.
B) relatively inelastic.
C) relatively elastic.
D) of unitary elasticity.

Relatively Elastic

Describes a situation where a small change in price leads to a larger change in the quantity demanded or supplied.

Decrease in Price

A reduction in the cost of a good or service, which can influence consumer demand and potentially market dynamics.