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

Question

Quizplus · Accepted Answer

When the value of price elasticity of demand is less than 1, demand is said to be inelastic. In this case, the value of 0.6 means that a change in price of a good will result in a smaller percentage change in the quantity demanded of that good, indicating inelastic demand.

If the Value of the Price Elasticity of Demand Is