If price elasticity of demand is 1.7,the demand for the commodity is
A) of unitary elasticity.
B) price postelastic.
C) price elastic.
D) price inelastic.
E) price preelastic.

Question

Quizplus · Accepted Answer

If the price elasticity of demand is greater than 1, the commodity is considered price elastic, meaning that a small change in price leads to a relatively larger change in demand. A value of 1.7 indicates a high responsiveness of demand to changes in price, therefore the commodity is price elastic.

If Price Elasticity of Demand Is 1