If the absolute value of the price elasticity of demand for a product is less than 1, then
A) quantity demanded is very sensitive to price changes.
B) demand is inelastic.
C) demand is unit-elastic.
D) demand is elastic.

Question

Quizplus · Accepted Answer

If the absolute value of the price elasticity of demand for a product is less than 1, then demand is said to be inelastic. This means that quantity demanded is not very sensitive to price changes, and a change in price will result in a relatively small change in quantity demanded.

If the Absolute Value of the Price Elasticity of Demand