When the elasticity of demand for a particular good is less than 1:
A)demand is elastic.
B)demand is inelastic.
C)the elasticity of demand is unit-elastic.
D)the good is a substitute.
E)the good is a normal good.

Question

Quizplus · Accepted Answer

When the elasticity of demand is less than 1, it means that a change in price will result in a proportionately smaller change in quantity demanded. This indicates that demand is inelastic, as consumers are relatively insensitive to changes in price.

When the Elasticity of Demand for a Particular Good Is