Demand is price inelastic if a relatively ________ price increase leads to a relatively ________ in the quantity demanded.
A) large; small increase
B) small; large decrease
C) large; small decrease
D) small; large increase

Question

Quizplus · Accepted Answer

Demand is price inelastic when a large change in price results in a small change in the quantity demanded, indicating that consumers are not very responsive to price changes.

Demand Is Price Inelastic If a Relatively ________ Price Increase