If the Absolute Price Elasticity of Demand for a Product

question 146

Multiple Choice

If the absolute price elasticity of demand for a product is equal to 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 unit-elastic and the percentage change in quantity demanded equals the percentage change in price.

---

Definitions:

Perpetual Inventory System

An inventory system that continuously tracks inventory levels and updates them after every purchase or sale, providing a real-time view of inventory.