Demand for a product will be inelastic if:
A)its price is so low that it is an inconsequential part of an individual's budget.
B)the product has a number of different uses.
C)many substitute products are available in the market.
D)the product can be repaired and replaced or prolonged in its use.

Question

Demand for a product will be inelastic if:
A)​its price is so low that it is an inconsequential part of an individual's budget.
B)the product has a number of different uses.
C)many substitute products are available in the market.
D)​the product can be repaired and replaced or prolonged in its use.

Quizplus · Accepted Answer

When a product's price is a small part of an individual's budget, changes in price have little impact on the quantity demanded, making demand inelastic.

Demand for a Product Will Be Inelastic If