If the price elasticity of demand for a good is less than one in absolute value, economists characterize that demand is
A)elastic.
B)inelastic.
C)perfect.
D)vertical.

Question

Quizplus · Accepted Answer

When the price elasticity of demand is less than one in absolute value, it indicates that a change in price will result in a proportionately smaller change in the quantity demanded. This type of demand is called inelastic demand, which means that consumers are not very responsive to changes in price.

If the Price Elasticity of Demand for a Good Is