Answer:
The answer is: C
Explanation:
Price elasticity of demand measures the sensitivity or responsiveness of quantity demanded of a good or service as a result of changes in pricing of that good or service. The computation of elasticity is done by dividing the percentage change in quantity demanded by the percentage change in price. This yields a units free measure of elasticity and can be interpreted as follows:
Elasticity less than 1: this is defined as price inelasticity (low sensitivity)
Elasticity equal to 1: this is defined as unit elasticity (proportionate sensitivity)
Elasticity greater than 1: this is defined as price elasticity (high sensitivity)
