Assuming elasticity is reported in absolute value,a measured elasticity of less than one implies:
A)the good is elastic.
B)the good is inelastic.
C)the good is unitary elastic.
D)Cannot be determined without more information.

Question

Quizplus · Accepted Answer

A measured elasticity of less than one implies that the good is inelastic. This means that a change in price would not result in a substantial change in the quantity of the good demanded.

Assuming Elasticity Is Reported in Absolute Value,a Measured Elasticity of Less