Demand is said to be price elastic, if the absolute value of price elasticity of demand is

Answer Details

Price elasticity of demand is a measure of how responsive the quantity demanded of a good is to a change in its price. If the absolute value of price elasticity of demand is greater than one, then the demand is said to be price elastic. This means that a small change in the price of the good will result in a relatively larger change in the quantity demanded of the good. In other words, the demand for the good is sensitive to changes in price.