Assuming price elasticity of demand is reported as an absolute value,a price elasticity of demand greater than one indicates demand:
A) for the good is elastic.
B) for the good is inelastic.
C) for the good is unitary elastic.
D) cannot be determined without more information.

Question

Quizplus · Accepted Answer

A price elasticity of demand greater than one indicates that a small change in price causes a relatively large change in quantity demanded. This means that demand for the good is elastic, as consumers are very sensitive to changes in price and will significantly alter their purchasing behavior in response.

Assuming Price Elasticity of Demand Is Reported as an Absolute