If the value of the price elasticity of demand is 0.6,demand is said to be
A)partially inelastic.
B)partially elastic.
C)inelastic.
D)somewhat inelastic.
E)elastic.

Question

Quizplus · Accepted Answer

A price elasticity of demand of 0.6 indicates that for every 1% increase in price, quantity demanded will decrease by 0.6%. This suggests that the demand for the good is relatively unresponsive to changes in price, hence it is considered to be inelastic.

If the Value of the Price Elasticity of Demand Is