Because demand in the business market for fabricating parts and materials is _____, a small increase in the price of wood screws will have relatively little effect on the price of reclining furniture that use the wood screws.
A) inelastic
B) contrived
C) negotiated
D) reciprocal
E) elastic

Question

Quizplus · Accepted Answer

The correct term is "inelastic," which means that the demand for a product does not change significantly with a change in price. In this context, it suggests that the demand for fabricating parts and materials (like wood screws) used in making reclining furniture will not significantly decrease even if their prices go up, hence having little effect on the overall price of the furniture.

Because Demand in the Business Market for Fabricating Parts and Materials