If the price elasticity of demand is calculated to be 0.75,then demand is:
A)price-inelastic.
B)price-elastic.
C)price unit-elastic.
D)positively sloped.

Question

Quizplus · Accepted Answer

A price elasticity of demand (PED) of 0.75 indicates that a 1% change in price will result in a less than 1% change in quantity demanded. This means that demand is relatively unresponsive to price changes and is considered to be price-inelastic. When PED is less than 1, demand is said to be price-inelastic.

If the Price Elasticity of Demand Is Calculated to Be