Absolute price elasticities are calculated for four commodities, and the values are: 0.009; 1.0; 3.3; and 4.1. Which indicates the most price-responsive situation?
A) 0.009
B) 1.0
C) 3.3
D) 4.1

Question

Quizplus · Accepted Answer

The most price-responsive situation is indicated by the highest absolute price elasticity value, which is 4.1. This means that a small change in price will result in a large change in quantity demanded.

Absolute Price Elasticities Are Calculated for Four Commodities, and the Values