The greater is the absolute price elasticity of demand, the
A) larger is the responsiveness of quantity demanded to the price change.
B) smaller is the responsiveness to a price change.
C) larger is the income of the buyer.
D) higher is the change in demand to an income change.

Question

Quizplus · Accepted Answer

Absolute price elasticity of demand refers to how much the quantity demanded changes in response to a change in price. A larger absolute price elasticity of demand means the quantity demanded is more responsive to price changes, indicating greater sensitivity to changes in price levels. In other words, a slight change in price will result in a significant change in the quantity demanded.

The Greater Is the Absolute Price Elasticity of Demand, the