Prices are said to be inelastic under which of the following conditions?
A)Increase in price, and little impact on sales volume.
B)Increase in price, and a sizable increase in sales volume.
C)Increase in price, and a sizeable decrease in sales volume.
D)Decrease in price, and a sizeable increase in sales volume.
E)Decrease in price, and a sizeable decrease in sales volume.

Question

Quizplus · Accepted Answer

Inelastic demand means that there is little change in the quantity demanded of a good or service even when its price changes. Hence, when the price of a product increases but the sales volume remains largely unaffected, it is an indication that the demand for the product is inelastic.

Prices Are Said to Be Inelastic Under Which of the Following