Question

The coefficient of price elasticity of a good is 0.8, its demand will said to be ______.

Options

• elastic

• inelastic

• perfectly elastic

• perfectly inelastic

Answer 1

The coefficient of price elasticity of a good is 0.8, its demand will said to be inelastic.

Explanation:

If the coefficient of price elasticity of a good is 0.8, its demand is said to be inelastic. This means that the percentage change in quantity demanded is less than the percentage change in price.