Inland Eastex Inc. manufactures toothpastes. Even when the company increased the price of its toothpastes last year, the sales did not drop. This is an example of _____.

Question

Quizplus · Accepted Answer

This is an example of inelastic demand since the increase in price did not lead to a significant decrease in sales. This means that consumers are still willing to buy the toothpaste even at a higher price, indicating a relatively low price elasticity of demand.