The price elasticity of demand (PED) coefficient of 0.8 means that a 1% change in the price of a product will lead to a 0.8% change in the quantity demanded of that product.
This coefficient indicates that the demand for the product is inelastic, meaning that consumers are not highly responsive to price changes. In this case, if the price of the product increases by 1%, the quantity demanded will decrease by only 0.8%. Conversely, if the price decreases by 1%, the quantity demanded will increase by 0.8%.
To summarize, the correct interpretation of a price elasticity of 0.8 is option b: a 1% change in the price of the product will lead to a 0.8% change in demand.