During the winter of 2017-2018, the price of heating oil in Canberra increased enormously but the quantity demanded decreased only a little. This response indicates that the demand for heating oil was
A) perfectly inelastic.
B) unit elastic.
C) inelastic.
D) perfectly elastic.
E) elastic.

Question

Quizplus · Accepted Answer

The fact that the quantity demanded decreased only a little despite a large increase in the price indicates that the demand for heating oil is relatively insensitive to price changes, making it inelastic.

During the Winter of 2017-2018, the Price of Heating Oil