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Solution:
The coefficient of price-elasticity of demand when the percentage increase in the quantity of a good demanded is smaller than the percentage fall in its price is less than one.
When the percentage increase in the quantity of a good demanded is smaller than the percentage fall in its price, it means that the demand for that good is less sensitive to changes in its price and hence less elastic. The coefficient of price-elasticity of demand measures how much the quantity demanded of a good changes when its price changes.
If this coefficient is less than one, it means that the demand for that good is less sensitive to changes in its price and hence less elastic.
Correct option is (c)