The price elasticity of demand for a product can be elastic,inelastic,and unitary over different price levels.

Question

Quizplus · Accepted Answer

The price elasticity of demand is not constant and can vary at different price levels. When the percentage change in quantity demanded is greater than the percentage change in price, demand is said to be elastic. When the percentage change in quantity demanded is less than the percentage change in price, demand is said to be inelastic. When the percentage change in quantity demanded is equal to the percentage change in price, demand is said to be unitary. So, the statement is true.

The Price Elasticity of Demand for a Product Can Be