Concept:Price inelastic demand means quantity demanded changes by a smaller percentage than price.
Explanation:Price elasticity of demand measures how responsive quantity demanded is to a price change.
If demand is price inelastic, the percentage change in quantity demanded is less than the percentage change in price.
As a numerical coefficient, this gives an elasticity value less than
1.
In the standard elasticity formula, the absolute value satisfies
∣Ed∣<1.
Since the question treats the coefficient directly, the correct condition is
Ed<1.
Answer:A. The price elasticity is less than one.