If the absolute value of the price elasticity of demand for DVD movies is 0.8 then the elasticity of demand of the DVD for the movie Avengers: Endgame should be
A) less then 0.8 in absolute value.
B) greater than 0.8 in absolute value.
C) equal to 1 in absolute value.
D) equal to zero because the DVD of this movie has been out for several years.

Question

Quizplus · Accepted Answer

The elasticity of demand for a specific movie like Avengers: Endgame is likely to be greater than 0.8 in absolute value because it targets a more specific audience with potentially fewer substitutes, making its demand more sensitive to price changes compared to DVDs in general.

If the Absolute Value of the Price Elasticity of Demand