Asked by Yaneth Restrepo on Jul 05, 2024
Verified
When demand is inelastic
A) the percentage change in quantity demanded is less than the percentage change in price.
B) the buyer is insensitive to price changes.
C) the elasticity coefficient is greater than zero,but less than one.
D) all of these statement statements are true.
Inelastic
Inelastic refers to a situation in which the quantity demanded or supplied of a good or service is relatively unresponsive to price changes.
Quantity Demanded
The total amount of a good or service that consumers are willing to purchase at a specific price level, at a given point in time.
Elasticity Coefficient
A numeric value that measures the responsiveness of the quantity demanded or supplied of a good to a change in one of its determinants, such as price.
- Attain insight into the notion of demand elasticity and the myriad elements that have an impact on it.
- Identify the differences between elastic and inelastic demand.
Verified Answer
ZK
Zybrea KnightJul 07, 2024
Final Answer :
D
Explanation :
All of the statements accurately describe characteristics of inelastic demand. In inelastic demand, the percentage change in quantity demanded is indeed less than the percentage change in price, indicating that consumers are not very responsive to price changes. This is also why buyers are described as being insensitive to price changes. The elasticity coefficient being greater than zero but less than one is the mathematical representation of inelastic demand.
Learning Objectives
- Attain insight into the notion of demand elasticity and the myriad elements that have an impact on it.
- Identify the differences between elastic and inelastic demand.