If the Price Elasticity of Demand Is Computed for Two

Multiple Choice

If the price elasticity of demand is computed for two products, and product A measures .79, and product B measures 1.6, then:

A) product A is more price elastic than product B.
B) product B is more price elastic than product A.
C) consumers are more sensitive to price changes in product A than in product B.
D) product B is more price inelastic than product A.
E) products A and B must be substitutes.