If the absolute value of the price elasticity of demand for a product is greater than 1, then
A) quantity demanded is not very sensitive to price changes.
B) demand is elastic.
C) demand is unit-elastic.
D) demand is inelastic.

Question

Quizplus · Accepted Answer

If the absolute value of the price elasticity of demand is greater than 1, it means that a small change in price leads to a relatively larger change in quantity demanded. This indicates that demand is elastic, and consumers are responsive to changes in price.

If the Absolute Value of the Price Elasticity of Demand