If the price elasticity of demand for a good is less than one in absolute value,economists would characterize consumers of this good
A) as not very sensitive to price.
B) as not very sensitive to the quantity they demand.
C) as very sensitive to price.
D) as elastic.

Question

Quizplus · Accepted Answer

A price elasticity of demand less than one in absolute value means that a change in price has a relatively small impact on the quantity of the good demanded by consumers. This indicates that consumers are not very sensitive to price changes, and are willing to pay a higher price for the good without significantly reducing their demand for it.

If the Price Elasticity of Demand for a Good Is