If the price elasticity of demand for a good is greater than one in absolute value,economists characterize that demand is
A) elastic.
B) inelastic.
C) perfect.
D) vertical.

Question

Quizplus · Accepted Answer

When the price elasticity of demand for a good is greater than one (in absolute value), economists characterize that demand as elastic. This means that a small change in price leads to a larger change in the quantity demanded, indicating that consumers are sensitive to changes in price.

If the Price Elasticity of Demand for a Good Is