When the elasticity coefficient for resource demand is less than one, resource demand is
A) inelastic.
B) elastic.
C) unit-elastic.
D) infinitely elastic.

Question

Quizplus · Accepted Answer

When the elasticity coefficient for resource demand is less than one, resource demand is said to be inelastic. This means that the quantity of the resource demanded by consumers does not change significantly even if there is a change in the price of the resource. In other words, the change in the price has a smaller effect on the quantity demanded.

When the Elasticity Coefficient for Resource Demand Is Less Than