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Question
If the absolute price elasticity of demand for a product is greater than 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 elastic and consumers are relatively sensitive to price changes.
Answer
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