When the quantity demanded is less sensitive to a change in price,then the absolute value of the price elasticity of demand is
A) smaller.
B) larger.
C) close to infinity.
D) close to 1.
E) unaffected by the change in sensitivity.

Question

Quizplus · Accepted Answer

When the quantity demanded is less sensitive to a change in price, it means that consumers do not change their purchasing quantity much when the price changes. This scenario is described by a smaller absolute value of the price elasticity of demand, indicating inelastic demand.

When the Quantity Demanded Is Less Sensitive to a Change