The numerical values for the PED coefficient could range from zero to infinity. In general, the demand for a good is said to be inelastic (or relatively inelastic) when the PED is less than one (in absolute value): that is, changes in price have a less than proportional effect on the quantity of the good demanded.
When the price elasticity of demand is relatively price?
When the price elasticity of demand is relatively elastic (−∞ < Ed < −1), the percentage change in quantity demanded is greater than that in price.
What is relatively demand?
Relatively elastic demand refers to the demand when the proportionate change produced in demand is greater than the proportionate change in price of a product. ... For example, if the price of a product increases by 20% and the demand of the product decreases by 25%, then the demand would be relatively elastic.
