Question

If the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price, the coefficient of price elasticity of demand is _______________.

• A. greater than $1$
• B. equal to $1$
• C. less than $1$
• D. zero

Answer 1

Answer: (C)

less than $1$

If the proportionate change in demand is smaller than the change in price; then elasticity of demand is always less than $1$.