What would be the absolute value of the elasticity if demand is elastic
A)less than 1
B)equal to 1
C)equal to 0
D)greater than 1

Question

Quizplus · Accepted Answer

The absolute value of the elasticity is always greater than 1 if the demand is elastic. Elasticity measures the responsiveness of demand to changes in price. If demand is elastic, a small change in price will lead to a bigger change in quantity demanded. Thus, the elasticity will be greater than 1 in absolute value.

What Would Be the Absolute Value of the Elasticity If