When the absolute price elasticity of demand is less than 1, demand is
A) elastic.
B) unit-elastic.
C) inelastic.
D) undetermined without more information.

Question

Quizplus · Accepted Answer

When the absolute price elasticity of demand is less than 1, it means that a change in price results in a proportionally smaller change in quantity demanded. In other words, demand is less sensitive to price changes, indicating inelastic demand.

When the Absolute Price Elasticity of Demand Is Less Than