If the coefficient of price elasticity of demand is 0.1, demand is
- elastic
-
inelastic
- zero elastic
- unitary elastic
The correct answer is: B
Explanation
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.