The total demand for many business goods and services is only minimally affected by price changes. Thus, this demand is ________.
A) derived
B) fluctuating
C) accelerated
D) multiple
E) inelastic

Question

Quizplus · Accepted Answer

The term "inelastic" refers to a situation in which changes in price have little to no effect on the quantity of a good or service demanded. Therefore, if the demand for business goods and services is only minimally affected by changes in price, it is likely to be classified as inelastic. The other answer choices (derived, fluctuating, accelerated, multiple) do not accurately describe the relationship between price and demand.

The Total Demand for Many Business Goods and Services Is