You are given some data for four different products - dryer sheets, shampoo, soap, and laundry detergent. The absolute value of the price elasticity of demand for dryer sheets is 4. The absolute value of the price elasticity of demand for shampoo is 0.2. The absolute value of the price elasticity of demand for soap is 0.5. The absolute value of the price elasticity of demand for laundry detergent is 2. Which product has the most elastic demand?
A)dryer sheets
B)shampoo
C)soap
D)laundry detergent

Question

Quizplus · Accepted Answer

The demand for a product is considered more elastic when the absolute value of its price elasticity of demand is higher. With a value of 4, dryer sheets have the highest absolute value, indicating the most elastic demand among the options.

You Are Given Some Data for Four Different Products -