Assuming elasticity is reported in absolute value,an inelastic demand has a measured elasticity:
A)of greater than zero.
B)of greater than one.
C)of less than one.
D)of exactly one.

Question

Quizplus · Accepted Answer

Inelastic demand means that the change in quantity demanded is proportionally smaller than the change in price. This is indicated by an elasticity value of less than one (in absolute value), as the percentage change in quantity is smaller than the percentage change in price. Therefore, option C is the correct answer.

Assuming Elasticity Is Reported in Absolute Value,an Inelastic Demand Has