If a 1 percent decrease in price results in less than a 1 percent increase in the quantity demanded, demand is
A)cross-price elastic.
B)price inelastic.
C)price elastic.
D)status quo elastic.
E)derived demand inelastic.

Question

Quizplus · Accepted Answer

If a 1 percent decrease in price results in less than a 1 percent increase in the quantity demanded, demand is price inelastic. This means that the change in price has a small impact on the quantity demanded, making it less responsive to price changes.

If a 1 Percent Decrease in Price Results in Less