Answer:
The answer is inelastic and less than 1.
Explanation:
When the percentage change in the quantity demanded for a good or service is less than the percentage change in price, the demand for that good or service is inelastic and less than one.
Elasticity measures the sensitivity one variable to any other variable. It is measured as the ratio of percentage change in quantity demanded to percentage change in price.
When a demand is elastic, it means it is sensitive to price and increase in price of the commodity will result in significant change in quantity demanded.
When a demand is inelastic, it means it is not sensitive to price. An increase in price of a commodity will result in almost no change in quantity demanded.
And for unitary demand, an increase in price of a commodity result in an equal change in quantity demanded.
The coefficient of elastic demand is greater than 1.
The coefficient of inelastic demand is less than 1.
The coefficient of unitary demand is equal to 1.
Answer:
inelastic
Explanation:
if the demand elasticity is equal to or less than one, it should be inelastic.
