If demand is inelastic, the absolute value of the price elasticity of demand is
A)one.
B)less than one.
C)greater than one.
D)greater than the absolute value of the slope of the demand curve.

Question

Quizplus · Accepted Answer

If demand is inelastic, it means that the quantity demanded is not very responsive to changes in price. In other words, a change in price results in a relatively small change in the quantity demanded. Mathematically, if the absolute value of the price elasticity of demand is less than one, then demand is said to be inelastic. Therefore, the best choice is B.

If Demand Is Inelastic, the Absolute Value of the Price