Price elasticities are calculated for four goods, and the values are: 4.1; 3.7; 1.0; 0.002. Which price elasticity is most elastic?
A) 4.1
B) 3.7
C) 1.0
D) 0.002

Question

Quizplus · Accepted Answer

The most elastic price elasticity is represented by the highest absolute value. In this case, 4.1 is the highest value, indicating that a small change in price will result in a large change in quantity demanded.

Price Elasticities Are Calculated for Four Goods, and the Values