If demand is inelastic,
A)then a 1% increase in price leads to a fall in quantity of greater than 1%.
B)then a 1% increase in price leads to a fall in quantity of less than 1%.
C)then a 1% increase in price leads to a fall in quantity of 1%.
D)then a 1% increase in price leads to a rise in quantity of less than 1%.

Question

Quizplus · Accepted Answer

When demand is inelastic, a 1% increase in price results in a less than 1% decrease in quantity demanded, indicating that consumers are not very responsive to price changes in this scenario.

If Demand Is Inelastic