How do you know whether the demand for a good is price elastic or price inelastic?
If the Price Elasticity of Demand is between 0 and 1, which means that the percentage change in demand is smaller than the percentage change in price, then the demand is price inelastic.If the Price Elasticity of Demand is greater than 1, which means that the demand responds more proportionately to the change in price, then the demand is price elastic.
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