If the price elasticity of demand is 5.3, demand is said to be
A)inelastic.
B)elastic.
C)unit elastic.
D)perfectly inelastic.
E)perfectly elastic.

Question

Quizplus · Accepted Answer

A price elasticity of demand greater than 1 means that demand is elastic, meaning that a change in price will result in a greater change in quantity demanded. A price elasticity of 5.3 is a relatively high degree of elasticity.

If the Price Elasticity of Demand Is 5