Which of the following statements best describes inelastic demand?
A) The demand curves appear to be fairly flat.
B) The percentage change in quantity demanded results from a price change greater than the percentage change in price.
C) Price elasticity of demand is greater than one.
D) Consumers are not very responsive to changes in price.

Question

Quizplus · Accepted Answer

Inelastic demand means that consumers are not very responsive to changes in price. This means that even if the price of a product increases, the quantity demanded does not decrease significantly. Therefore, the correct option is D. Option A describes a relatively elastic demand curve, option B describes an elastic demand, and option C describes a unit elastic demand.

Which of the Following Statements Best Describes Inelastic Demand