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 a change in price does not have a significant impact on the quantity demanded. In this case, shoe manufacturers are unlikely to change their leather purchasing habits based on small changes in price, indicating inelastic demand. The other options are not relevant to the given scenario.

Shoe Manufacturers Are Not Going to Buy Much More Leather