Shoe manufacturers are not going to buy much more leather if the price of leather falls, nor will they buy much less leather if the price rises, unless they can find satisfactory substitutes. This is an example of ________.

Question

Quizplus · Accepted Answer

Inelastic demand refers to a situation where changes in price have little impact on the quantity demanded. In this case, shoe manufacturers are unlikely to significantly alter their demand for leather based on price fluctuations, indicating inelastic demand.

Shoe Manufacturers Are Not Going to Buy Much More Leather