If the absolute price elasticity of demand for a product is less than 1, then
A) the absolute price elasticity of demand is inelastic and consumers are relatively insensitive to price changes.
B) the absolute price elasticity of demand is inelastic and consumers are relatively sensitive to price changes.
C) the absolute price elasticity of demand is elastic and consumers are relatively insensitive to price changes.
D) the absolute price elasticity of demand is elastic and consumers are relatively sensitive to price changes.

Question

Quizplus · Accepted Answer

If the absolute price elasticity of demand for a product is less than 1, it means that the percentage change in quantity demanded is less than the percentage change in price. This indicates that demand is relatively insensitive to price changes, and therefore, the demand is inelastic.

If the Absolute Price Elasticity of Demand for a Product