Assuming price elasticity of demand is reported as an absolute value,an elastic demand has an elasticity:
A) greater than one.
B) less than one.
C) exactly one.
D) greater than zero and less than one.

Question

Quizplus · Accepted Answer

When the price elasticity of demand is reported as an absolute value, a value greater than one indicates that the demand is elastic, meaning a small change in price leads to a significant change in demand. The higher the absolute value, the more sensitive consumers are to price changes. Therefore, when the elasticity is greater than one, a change in price has a greater impact on the quantity demanded.

Assuming Price Elasticity of Demand Is Reported as an Absolute