When demand is inelastic
A)The percentage change in price is greater than the percentage change in quantity demanded.
B)Buyers are very sensitive to changes in price.
C)The product in demand has many substitute goods.

Question

Quizplus · Accepted Answer

When demand is inelastic, price and quantity demanded have an inverse relationship, but the percentage change in price is greater than the percentage change in quantity demanded. This means that a change in price has a relatively small effect on the quantity demanded, and consumers are not very sensitive to price changes. This is often the case when the product has few or no close substitutes.

When Demand Is Inelastic