If the elasticity of demand for a good is 0.2,then the demand for that good is
A)perfectly elastic.
B)elastic.
C)unit elastic.
D)inelastic.
E)perfectly inelastic.

Question

Quizplus · Accepted Answer

When the elasticity of demand for a good is less than 1 (in this case, 0.2), it means that the demand for that good is inelastic. This indicates that the quantity demanded changes by a smaller percentage than the percentage change in price.

If the Elasticity of Demand for a Good Is 0