Large reductions in price result in relatively low increases in quantity demanded when consumers have
A) little demand.
B) unitary demand.
C) inelastic demand.
D) elastic demand.

Question

Quizplus · Accepted Answer

When consumers have inelastic demand, large reductions in price result in relatively low increases in quantity demanded because their purchase decisions are not significantly influenced by price changes.

Large Reductions in Price Result in Relatively Low Increases in Quantity