Final answer:
The smaller the price elasticity of demand, the less responsive consumers are to price changes. This is known as inelastic demand, indicating low responsiveness to price fluctuations.
Step-by-step explanation:
The smaller the price elasticity of demand, the less the responsiveness of quantity demanded to a change in price. When the elasticity of demand is less than one, this condition is described as inelastic demand, which means that a 1 percent increase in price will result in less than a 1 percent change in the quantity demanded. In other words, consumers are not highly responsive to price changes when demand is inelastic, a change in price will lead to a less than proportional change in quantity demanded.