When the price elasticity of demand is ________,demand for the good is elastic.
A)positive
B)greater than 1
C)equal to 1
D)between 1 and zero
E)equal to zero

Question

Quizplus · Accepted Answer

When the price elasticity of demand is greater than 1, it means that a small change in price causes a relatively larger change in quantity demanded. This suggests that the demand for the good is sensitive to changes in price, and therefore, it is elastic.

When the Price Elasticity of Demand Is ________,Demand for the Good