A product with an inelastic demand means that
A)consumers are relatively insensitive to a change in the price of the product.
B)producers are relatively sensitive to a change in the quantity demanded.
C)consumers are relatively sensitive to a change in the price of the product.
D)producers are relatively insensitive to a change in the quantity demanded.
E)consumers are relatively insensitive to a change in the quantity demanded.

Question

Quizplus · Accepted Answer

An inelastic demand means that consumers are relatively insensitive to a change in the price of the product. This means that even if the price of the product increases, consumers will still continue to purchase it due to the lack of substitutes or essential need for the product. In such situations, producers can increase the price without experiencing a significant decrease in quantity demanded.

A Product with an Inelastic Demand Means That