(Answered) A price elasticity of demand that is less than one indicates:unitary elasticity.elastic…

➤ When should firms or policymakers act on inelastic demand information?
Consider inelastic demand when setting taxes, utility rates, or monopoly pricing. An inelastic market yields larger tax revenue with smaller behavioral change and a heavier consumer burden. Firms may raise prices to increase profits, while policymakers weigh equity, regulation, and potential long-term substitution effects.