If the Absolute Price Elasticity of Demand for a Product

question 151

Multiple Choice

If the absolute price elasticity of demand for a product is greater than 1, then

• A) the absolute price elasticity of demand is inelastic and consumers are relatively insensitive to price changes.
• B) the absolute price elasticity of demand is inelastic and consumers are relatively sensitive to price changes.
• C) the absolute price elasticity of demand is elastic and consumers are relatively insensitive to price changes.
• D) the absolute price elasticity of demand is elastic and consumers are relatively sensitive to price changes.

---

Definitions:

Equity Loan

A type of loan in which the borrower uses the equity of their property as collateral.

Interest Rate

The amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.

Cyclic Hydrocarbons

Hydrocarbon compounds that contain one or more rings of carbon atoms in their structure, including aromatic and non-aromatic forms.

Alternating Bonds

Alternating bonds refer to a pattern where single and double bonds alternate within a chemical structure, often seen in conjugated systems.