if-the-price-elasticity-of-demand-for-a-product-is-calculated-as-12-what-does-th

Question

If the price elasticity of demand for a product is calculated as 1.2, what does this imply about consumer responsiveness to price changes?

Accepted Answer

Consumers are highly responsive to price changes

Answer

Consumers are moderately responsive to price changes

Answer

Consumers are perfectly responsive to price changes

Answer

Consumers are not very responsive to price changes