If the price elasticity of demand for a good is greater than one in absolute terms,we say that demand is
A)elastic.
B)inelastic.
C)perfect.
D)vertical.

Question

Quizplus · Accepted Answer

When the price elasticity of demand for a good is greater than one in absolute terms, it means that a small change in price will lead to a larger change in quantity demanded. This indicates that the demand for the good is sensitive to changes in price, and hence, the demand is said to be elastic.

If the Price Elasticity of Demand for a Good Is