Final answer:
If the price elasticity of demand of a good is -0.25, it denotes inelastic demand, indicating low responsiveness to price changes.
Step-by-step explanation:
If the price elasticity of demand of a good is -0.25, the demand is characterized as inelastic. This is because the absolute value of the price elasticity, which is 0.25 in this case, is less than one. According to the provided reference material, an inelastic demand occurs when the elasticity is less than one, indicating that a 1 percent increase in price results in less than a 1 percent change in quantity demanded, showing low responsiveness to price changes by consumers. Therefore, the correct characterization of the demand for this good is inelastic. Options such as inferior or normal goods are unrelated to the elasticity of demand; these terms describe income effects, not price responsiveness.