The demand for a good is price inelastic if

The demand for a good is price inelastic if

  1. The price elasticity is one
  2. The price elasticity is less than one ✓
  3. The price elasticity is greater than one
  4. The price elasticity is negative

Explanation

This answer correctly explains the economic concept. Economics studies how people make choices about limited resources.

The other options describe different economic ideas or situations. They don’t fit what this question asks.

Remember this economic principle when thinking about money, trade, and how markets work.