If the price elasticity of demand for peanuts is 0.4,then the demand is inelastic.

Name: If the price elasticity of demand for peanuts is 0.4,then the demand is inelastic.
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Quizplus · Accepted Answer

A price elasticity of demand less than 1 (in absolute value) indicates that the demand is inelastic. In this case, a price increase for peanuts would lead to a decrease in quantity demanded, but this decrease would be less than proportional to the price increase. Therefore, demand for peanuts is inelastic.

If the Price Elasticity of Demand for Peanuts Is 0