If the elasticity of demand for peaches is 1.76 and the elasticity of demand for apples is 1.59, then consumers are
A) more sensitive to a change in the price of peaches than they are to a change in the price of apples.
B) less sensitive to a change in the price of peaches than they are to a change in the price of apples.
C) more sensitive to a change in the quantity of peaches than they are to a change in the quantity of apples.
D) less sensitive to a change in the quantity of peaches than they are to a change in the quantity of apples.

Question

Quizplus · Accepted Answer

Elasticity of demand measures how sensitive consumers are to price changes. A higher elasticity value indicates greater sensitivity. Since the elasticity of demand for peaches (1.76) is higher than for apples (1.59), consumers are more sensitive to price changes for peaches.

If the Elasticity of Demand for Peaches Is 1