WAEC - Economics (2014 - No. 17)
If the coefficient of price elasticity of demand is 0.1, demand is
elastic
inelastic
zero elastic
unitary elastic
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.
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