what-does-a-price-elasticity-of-demand-value-of-12-indicate

Question

What does a price elasticity of demand value of -1.2 indicate?

Accepted Answer

Demand is elastic, and consumers are sensitive to price changes.

Answer

Demand is inelastic, and consumers are not sensitive to price changes.

Answer

Demand is perfectly elastic, and consumers will not buy at any other price.

Answer

Demand is unit elastic, and consumers are indifferent to price changes.