If the absolute value of price elasticity is greater than 1, this means the demand curve in that region is:
A) price elastic.
B) price inelastic.
C) unit price elastic.
D) upward sloping.

Question

Quizplus · Accepted Answer

When the absolute value of price elasticity is greater than 1, it indicates that a small change in price results in a relatively larger change in quantity demanded. This characteristic is typical of price elastic demand, where consumers are sensitive to price changes and adjust their buying behavior accordingly. Therefore, the correct answer is A) price elastic.

If the Absolute Value of Price Elasticity Is Greater Than