If demand hardly changes with a small change in price, the demand is ________.
A) variable
B) inelastic
C) highly elastic
D) derived
E) negative

Question

Quizplus · Accepted Answer

If demand hardly changes with a small change in price, then demand is inelastic. This means that consumers are not very responsive to price changes and will continue to buy the same amount of the product regardless of a price increase or decrease. In contrast, if demand changes significantly with even a small change in price, then demand is elastic, meaning consumers are very responsive to price changes.

If Demand Hardly Changes with a Small Change in Price