If the price elasticity of demand is found to be -3/4, then demand is:
A) price inelastic.
B) price elastic.
C) unit price elastic.
D) positively sloped.

Question

Quizplus · Accepted Answer

When the absolute value of the price elasticity of demand is less than 1 (0 < |E_d| < 1), demand is considered price inelastic, meaning that percentage changes in price lead to smaller percentage changes in quantity demanded.

If the Price Elasticity of Demand Is Found to Be