If the price elasticity of demand is 0.2, then price is relatively:
A) absolute.
B) unit elastic.
C) inelastic.
D) elastic.

Name: If the price elasticity of demand is 0.2, then price is relatively: A) absolute. B) unit elastic. C) inelastic. D) elastic.
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Question

Quizplus · Accepted Answer

When the price elasticity of demand is less than 1 (i.e., between 0 and 1), it indicates that the demand is inelastic. This means that the percentage change in quantity demanded is less than the percentage change in price.

If the Price Elasticity of Demand Is 0