If \(0\lt\eta\lt 1\), then the demand is
Q.1 (A) (iv) If \(0\lt\eta\lt 1\), then the demand is
A. elastic
B. unitary elastic
C. relatively elastic
D. relatively inelastic
1 answer
Best answer
Answer: D. relatively inelastic
Answer: (d) relatively inelastic
When \(0\lt\eta\lt 1\) a change in price causes a proportionately smaller change in demand, so the demand is relatively inelastic. (\(\eta=1\): unitary elastic; \(\eta\gt 1\): relatively elastic.)
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· 28 Oct 2026
AI-verified · Oct 2026
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