Which statement does NOT explain the inelastic demand for bread?
A) The percentage of the budget spent on bread is small.
B) Few close substitutes for bread exist.
C) Bread is a necessity for most consumers.
D) Bread sales decline significantly in the short run as bread prices rise.

Question

Quizplus · Accepted Answer

Inelastic demand means that the quantity demanded does not change significantly when the price changes. Statement D, which suggests that bread sales decline significantly as prices rise, contradicts the concept of inelastic demand, as it implies a more elastic demand where quantity demanded is sensitive to price changes.

Which Statement Does NOT Explain the Inelastic Demand for Bread