If the percentage change in the quantity of teapots demanded is greater than the percentage change in the price of teapots, then
A)the price elasticity of demand for teapots is greater than 1 in absolute value.
B)the demand for teapots is unit elastic.
C)the price elasticity of demand for teapots is equal to zero.
D)the price elasticity of demand for teapots is less than 1 in absolute value.

Question

Quizplus · Accepted Answer

This scenario indicates that the change in quantity demanded is relatively higher than the change in price, which means demand is relatively more responsive to price changes. This suggests that the price elasticity of demand for teapots is greater than 1 in absolute value.

If the Percentage Change in the Quantity of Teapots Demanded