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If the price elasticity of demand is less than 1, what type of demand is this classified as?
  • a)
    Elastic
  • b)
    Perfectly elastic
  • c)
    Inelastic
  • d)
    Unit elastic
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
If the price elasticity of demand is less than 1, what type of demand ...
Demand is classified as inelastic when the price elasticity of demand is less than 1. This means that a change in price results in a smaller change in the quantity demanded, indicating that consumers are less responsive to price changes.
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