The demand curve is inelastic if the absolute value of the elasticity is:
A) greater than 1.
B) greater than 0.
C) less than 1.
D) equal to 1.

Question

Quizplus · Accepted Answer

The demand curve is inelastic when the absolute value of the elasticity is less than 1. This means that a change in price will result in a relatively smaller change in quantity demanded. In other words, even if price increases, consumers will continue to buy the product because they perceive it as a necessity or because there are no good substitutes available.

The Demand Curve Is Inelastic If the Absolute Value of the Elasticity