If the demand for product X is inelastic, a 4 percent decrease in the price of X will
A)decrease the quantity of X demanded by more than 4 percent.
B)decrease the quantity of X demanded by less than 4 percent.
C)increase the quantity of X demanded by more than 4 percent.
D)increase the quantity of X demanded by less than 4 percent.

Question

Quizplus · Accepted Answer

When demand is inelastic, a decrease in price leads to a less than proportional increase in the quantity demanded. Thus, a 4 percent decrease in price will increase the quantity demanded by less than 4 percent.

If the Demand for Product X Is Inelastic, a 4