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

• A. Demand is inelastic, and consumers are not sensitive to price changes.
• B. Demand is elastic, and consumers are sensitive to price changes.
• C. Demand is perfectly elastic, and consumers will not buy at any other price.
• D. Demand is unit elastic, and consumers are indifferent to price changes.

Answer: (B)