PED is often used when discussing price sensitivity in economics. In general, the demand for a good is said to be elastic, or _____ price changes, when its PED is greater than one. That is, changes in price have a relatively large effect on the quantity of a good demanded. Conversely, the demand for a good is said to be inelastic when the PED is less than one. In such cases, a large change in price is accompanied by a small amount of change in quantity demanded.