Demand is said to be price inelastic when the coefficient of price elasticity of demand is
A)greater than +1
B)between 0 and +1
C)zero
D)infinity

Question

Quizplus · Accepted Answer

When the coefficient of price elasticity of demand is between 0 and +1, it indicates that a change in price leads to a proportionately smaller change in quantity demanded. This means that the demand is price inelastic, as consumers are not very responsive to changes in price.

Demand Is Said to Be Price Inelastic When the Coefficient