If the price elasticity of demand for a good is .75,the demand for the good can be described as:
A) normal.
B) elastic.
C) inferior.
D) inelastic.

Question

Quizplus · Accepted Answer

A price elasticity of demand less than 1 (i.e. <1) is considered inelastic. This means that a change in price will result in a proportionally smaller change in quantity demanded. Therefore, the demand for the good is relatively unresponsive to changes in price.

If the Price Elasticity of Demand for a Good Is