We Say That a Good Has Elastic Demand Whenever the Absolute

Multiple Choice

We say that a good has elastic demand whenever the absolute value of the price elasticity of demand is greater than one. A one percent change in price therefore causes

A) exactly a one percent change in the quantity demanded.
B) a change of less than one percent in the quantity demanded.
C) a greater than one percent change in quantity demanded.
D) a change that cannot be determined based on one percent.