Asked by Shannen Relova on May 30, 2024
Verified
Demand is elastic if the price elasticity of demand is greater than 1.
Price Elasticity
A measure of how the quantity demanded or supplied of a good changes in response to a change in its price, indicating the sensitivity of consumers or producers to price changes.
Elastic
Describing a situation where the demand or supply for a product responds significantly to changes in price.
- Gain an understanding of the notion of price elasticity of demand and its consequence on consumer buying patterns.
Verified Answer
KT
Karen TamacasJun 05, 2024
Final Answer :
True
Explanation :
When the price elasticity of demand is greater than 1, it indicates that the quantity demanded responds significantly to price changes, which is the definition of elastic demand.
Learning Objectives
- Gain an understanding of the notion of price elasticity of demand and its consequence on consumer buying patterns.