If the elasticity greater than 1 is demand elastic or inelastic?

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1169471

2026-03-04 11:35

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If the elasticity is greater than 1, demand is considered elastic. This means that consumers are relatively responsive to changes in price; a small change in price leads to a proportionally larger change in the quantity demanded. Conversely, if the elasticity is less than 1, demand is inelastic, indicating that consumers are less responsive to price changes.

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