If the demand for a product is said to be relatively inelastic,the "absolute" value of the elasticity coefficient will be
A)less than one.
B)greater than one.
C)equal to one.
D)zero.

Question

Quizplus · Accepted Answer

When demand for a product is relatively inelastic, it means that a change in price leads to a proportionally smaller change in quantity demanded. This is reflected in the absolute value of the elasticity coefficient, which is less than one. A coefficient of zero would indicate a completely inelastic demand, where price changes have no impact on quantity demanded. A coefficient of one would indicate unit elasticity, where a change in price leads to an equal percentage change in quantity demanded. A coefficient greater than one would indicate elastic demand, where a change in price leads to a proportionally larger change in quantity demanded.

If the Demand for a Product Is Said to Be