Assuming price elasticity of demand is reported as an absolute value, the measured elasticity for an inelastic demand would be:
A) greater than zero.
B) greater than one.
C) less than one.
D) exactly one.

Question

Quizplus · Accepted Answer

Price elasticity of demand measures the responsiveness of the quantity demanded to a change in price. If the demand is inelastic, it means that the quantity demanded changes proportionally less than the change in price. Therefore, the absolute value of elasticity would be less than one.

Assuming Price Elasticity of Demand Is Reported as an Absolute