Asked by Chris Davis on Jul 03, 2024
Verified
If a 1 percent decrease in price results in less than a 1 percent increase in the quantity demanded, demand is
A) cross-price elastic.
B) price inelastic.
C) price elastic.
D) status quo elastic.
E) derived demand inelastic.
Price Inelastic
A situation in which the demand for a product does not change significantly in response to a change in its price.
Quantity Demanded
The total amount of a product that consumers are willing and able to purchase at a specific price in a given time period.
- Gain insight into the notion of price elasticity and ascertain its contributory elements.
Verified Answer
ZK
Zybrea KnightJul 05, 2024
Final Answer :
B
Explanation :
If a 1 percent decrease in price results in less than a 1 percent increase in the quantity demanded, demand is price inelastic. This means that the change in price has a small impact on the quantity demanded, making it less responsive to price changes.
Learning Objectives
- Gain insight into the notion of price elasticity and ascertain its contributory elements.