The demand for a good is price inelastic if - JAMB Economics 2023 Question
The demand for a good is price inelastic if
A
The price elasticity is less than one
B
The price elasticity is one
C
The price elasticity is negative
D
The price elasticity is greater than one
correct option: a
The demand for a good is price inelastic if the price elasticity is less than one. Price elasticity of demand measures the responsiveness of quantity demanded to changes in price. When the absolute value of the price elasticity is less than one, it indicates price inelastic demand, meaning that the percentage change in quantity demanded is smaller than the percentage change in price.
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