What does a price elasticity of demand less than 1 indicate?

Economics Supply And Demand Questions



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What does a price elasticity of demand less than 1 indicate?

A price elasticity of demand less than 1 indicates that the demand for a product is inelastic. This means that a change in price will result in a proportionally smaller change in quantity demanded. In other words, consumers are less responsive to price changes, and the demand for the product is relatively insensitive to price fluctuations.