When demand is elastic,the absolute number for price elasticity will be
A)Greater than 0.
B)Less than 1.
C)Greater than 1.
D)Equal to 1.

Question

Quizplus · Accepted Answer

When demand is elastic, the absolute value of price elasticity of demand is greater than 1. This means that a change in price will lead to a proportionately larger change in quantity demanded. For example, if the price of a good increases by 10%, the quantity demanded will decrease by more than 10%.

When Demand Is Elastic,the Absolute Number for Price Elasticity Will