Demand is classed as price inelastic if the elasticity coefficient is:
A) less than one
B) equal to one
C) greater than one
D) equal to zero

Question

Quizplus · Accepted Answer

Price elasticity of demand measures the responsiveness of quantity demanded to a change in price. If the elasticity coefficient is less than one, it means that a change in price will result in a proportionately smaller change in quantity demanded. This is known as price inelastic demand.

Demand Is Classed as Price Inelastic If the Elasticity Coefficient