You recently raised your prices on the products you sell to your business customers. To your surprise, these customers did not change the amount of units they purchase from you. It was as if the price increase did not matter to these customers. Which of the following types of business demand most accurately describes this situation?
A) Constant demand
B) Inelastic demand
C) Joint demand
D) Elastic demand
E) Derived demand

Question

Quizplus · Accepted Answer

This situation can be described as inelastic demand, where the change in price does not significantly affect the quantity demanded by the customers. This means that the products you sell have a relatively low price elasticity of demand, and customers are willing to pay the higher price to continue purchasing the same amount of units.

You Recently Raised Your Prices on the Products You Sell