The demand for a good is elastic if the price elasticity of demand is _____.

• The demand for a good is elastic if the price elasticity of demand is greater than one.

The price elasticity of demand evaluates the quantity demanded shift for a product in reaction to price changes. When a commodity is elastic, a price adjustment easily leads to a shift in the desired quantity. That is, a small percentage shift in price results in a notable percentage variation in quantity demanded.