If the market demand for oranges is relatively inelastic with respect to price, orange consumers:
A)will buy fewer oranges at any higher price but will spend more money on oranges.
B)will buy fewer oranges at any higher price and will spend less money on oranges.
C)will buy more oranges at any higher price.
D)pay no attention to price in their purchasing decisions.

Question

Quizplus · Accepted Answer

When the market demand for oranges is relatively inelastic with respect to price, consumers will continue to purchase oranges even if the price increases, but they will buy fewer oranges. However, since they are willing to pay a higher price for each orange, they will end up spending more money on oranges overall.

If the Market Demand for Oranges Is Relatively Inelastic with Respect