Question on: WAEC Economics - 2014
If the coefficient of price elasticity of demand is 0.1, demand is
A
elastic
B
inelastic
C
zero elastic
D
unitary elastic
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Correct Option: B
The numerical values for the PED coefficient could range from zero to infinity. In general, the demand for a good is said to be inelastic (or relatively inelastic) when the PED is less than one (in absolute value): that is, changes in price have a less than proportional effect on the quantity of the good demanded.
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