If price elasticity of demand is 0.3,the demand for the commodity is
A) of unitary elasticity.
B) price postelastic.
C) price elastic.
D) price inelastic.
E) price preelastic.

Question

Quizplus · Accepted Answer

If price elasticity of demand is less than 1, it is said to be price inelastic. 
Since in this case, the price elasticity of demand is 0.3 which is less than 1, the demand for the commodity is price inelastic.

If Price Elasticity of Demand Is 0