Explanation:

When the price elasticity of demand for a product is greater than 1, it means that the demand is elastic. Elasticity of demand measures the responsiveness of quantity demanded to a change in price. In this case, a price change will result in a relatively larger change in quantity demanded.

Key Points:
- Price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price.
- When the price elasticity of demand is greater than 1, it indicates that a small percentage change in price will lead to a larger percentage change in quantity demanded.
- Elastic demand means that consumers are highly responsive to changes in price. They will significantly alter their purchasing behavior in response to price changes.
- Elastic demand is typically observed for products that have close substitutes in the market. Consumers have more options and can easily switch to other similar products if the price of one product increases.
- When demand is elastic, a decrease in price will lead to an increase in total revenue for the seller. The increase in quantity demanded compensates for the decrease in price, resulting in higher overall sales.
- On the other hand, if the price elasticity of demand is less than 1, it indicates inelastic demand. Inelastic demand means that consumers are not very responsive to changes in price. They will continue to purchase the product even if there is a change in price.
- Inelastic demand is often observed for products that are necessities or have limited substitutes. Consumers may have fewer options and may not be able to easily switch to alternative products.
- When demand is inelastic, a decrease in price will lead to a decrease in total revenue for the seller. The decrease in price is not enough to offset the decrease in quantity demanded, resulting in lower overall sales.

Therefore, when the price elasticity of demand for a product is greater than 1, it means that the demand is elastic.