You are given some data for four different products - milk, eggs, beef, and orange juice. The absolute value of the price elasticity of demand for milk is 3. The absolute value of the price elasticity of demand for eggs is 1.2. The absolute value of the price elasticity of demand for beef is 0.9. The absolute value of the price elasticity of demand for orange juice is 3.5. Which product has the most elastic demand?
A)milk
B)eggs
C)beef
D)orange juice

Question

Quizplus · Accepted Answer

The product with the highest absolute value of price elasticity of demand is the most elastic, which in this case is orange juice with a value of 3.5.

You Are Given Some Data for Four Different Products -