When the price elasticity of demand is greater than one, it means that demand is

Question

When the price elasticity of demand is greater than one, it means that demand is

inelastic and the percent change in quantity is less than the percent change in price.

inelastic and the percent change in quantity is greater than the percent change in price.

elastic and the percent change in quantity is greater than the percent change in price.

elastic and the percent change in quantity is less than the percent change in price.

inelastic and the percent change in quantity is less than the percent change in price.

inelastic and the percent change in quantity is greater than the percent change in price.

elastic and the percent change in quantity is greater than the percent change in price.

elastic and the percent change in quantity is less than the percent change in price.

Explanation / Answer

Ans) c) elastic and the percent change in quantity is greater than the percent change in price.

Reason: Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price

If the value is greater than one, demand is perfectly elastic (demand is affected to a greater degree by changes in price).

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