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

Question

Quizplus · Accepted Answer

The absolute value of the elasticity is always greater than or equal to 0. If demand is inelastic, it means that the percentage change in quantity demanded is less than the percentage change in price, which results in a value of elasticity less than 1 (in absolute value). Therefore, the best choice is A.

What Would Be the Absolute Value of the Elasticity If