When the price elasticity of demand is ________, demand for the good is elastic.
A)equal to infinity
B)greater than 1
C)equal to 1
D)between 1 and zero
E)equal to zero

Question

Quizplus · Accepted Answer

When the price elasticity of demand is greater than 1, it means that a small change in price leads to a large change in the quantity demanded, indicating that demand for the good is elastic. In other words, consumers are sensitive to changes in price and may switch to substitute products if the price increases.

When the Price Elasticity of Demand Is ________, Demand for the Good