Answer
If the elasticity is greater than 1, demand is elastic. If elasticity equals 0, then demand is perfectly inelastic.
Work Step by Step
The price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. If quantity demanded moves proportionately less than the price, then the elasticity is less than 1, and demand is said to be inelastic. If quantity demanded moves proportionately more than the price, then the elasticity is greater than 1, and demand is said to be elastic. Elasticity of demand is zero when an increase in price leaves the quantity demanded unchanged. Hence, it is perfectly inelastic.
