Demand is classed as inelastic if the elasticity coefficient is:
A)less than one
B)equal to one
C)greater than one
D)equal to zero

Question

Quizplus · Accepted Answer

When the elasticity coefficient is less than one, demand is considered inelastic. This means that a change in price will have a relatively small effect on the quantity demanded. Products that are necessities or have limited substitutes, such as gasoline or medication, generally have inelastic demand.

Demand Is Classed as Inelastic If the Elasticity Coefficient Is