The correct answer is: B. greater than one.
The elasticity coefficient is a measure of how responsive consumers are to changes in price. A demand for a product is said to be elastic if consumers are very responsive to changes in price, meaning that a small change in price will lead to a large change in demand. A demand for a product is said to be inelastic if consumers are not very responsive to changes in price, meaning that a large change in price will lead to a small change in demand.
The elasticity coefficient is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the elasticity coefficient is greater than one, then the demand is elastic. If the elasticity coefficient is less than one, then the demand is inelastic. If the elasticity coefficient is equal to one, then the demand is unit elastic.
In the case of a product with elastic demand, a small change in price will lead to a large change in demand. This means that if the price of a product goes up, consumers will buy less of it. Conversely, if the price of a product goes down, consumers will buy more of it.
In the case of a product with inelastic demand, a large change in price will lead to a small change in demand. This means that even if the price of a product goes up a lot, consumers will still buy about the same amount of it. Conversely, even if the price of a product goes down a lot, consumers will still buy about the same amount of it.
The elasticity coefficient is an important concept in economics because it can be used to predict how consumers will respond to changes in price. This information can be used by businesses to make decisions about pricing and marketing.