A price elasticity of demand equal to _______ allows a greater markup than a price elasticity of demand equal to______ .

Question

Quizplus · Accepted Answer

A price elasticity of demand equal to 3.1 allows a greater markup than a price elasticity of demand equal to 3.2 because a lower elasticity means that consumers are less responsive to changes in price, allowing the seller to charge a higher markup without losing too many customers.

A Price Elasticity of Demand Equal to _______ Allows a Greater