Answer:
a. 0.3
Explanation:
Elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Demand is inelastic if a change in price has little or no effect on quantity demanded.
If price is increased, the quantity demanded doesn't change and total revenue increases.
The coefficient of elasticity for inelastic demand is usually less than one.
Demand is elastic if a small change in price leads to a greater change in quantity demanded. The coefficient of elasticity for elastic demand is usually greater than 1. If price is increased, the quantity demanded falls and total revenue falls.
Demand in unitary elastic if a change in price has the same proportional effect on quantity demanded. The coefficient of elasticity for unitary demand is 1.
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