If the value of the price elasticity of demand is 0.6,demand is said to be
A)elastic.
B)partially elastic.
C)inelastic.
D)partially inelastic.
E)somewhat inelastic.

Question

Quizplus · Accepted Answer

A price elasticity of demand (PED) of 0.6 is less than one, which means that the percentage change in quantity demanded will be less than the percentage change in price. This indicates that demand is inelastic, meaning that consumers are relatively unresponsive to changes in price. In other words, if the price increases by 1%, quantity demanded will decrease by less than 1%. If the PED were greater than 1, demand would be elastic, meaning that consumers are highly responsive to changes in price, and if the PED were exactly 1, demand would be unit elastic, meaning that the percentage change in quantity demanded would be exactly equal to the percentage change in price.

If the Value of the Price Elasticity of Demand Is