Price elasticity of demand is more likely to be greater than one if:
A)consumers have a long time to adjust to a price change.
B)the product is a necessity.
C)demand is inelastic.
D)there are few close substitutes for the product.
E)total revenue declines in response to a price reduction.

Question

Quizplus · Accepted Answer

Price elasticity of demand is more likely to be greater than one (elastic) when consumers have a long time to adjust to a price change, as they can find alternatives or change their consumption habits.

Price Elasticity of Demand Is More Likely to Be Greater