A product with an inelastic demand means that
A) consumers are relatively sensitive to a change in the price of the product.
B) consumers are relatively insensitive to a change in the quantity demanded.
C) producers are relatively sensitive to a change in the quantity demanded.
D) producers are relatively insensitive to a change in the price of the product.
E) consumers are relatively insensitive to a change in the price of the product.

Question

Quizplus · Accepted Answer

An inelastic demand means that consumers are relatively insensitive to a change in the price of the product. This means that a change in price will not significantly affect the quantity demanded. This is often the case for essential goods or goods that have few close substitutes.

A Product with an Inelastic Demand Means That