The demand for a product is said to be inelastic if total consumer expenditures
A) remain constant as price changes.
B) rise more than price rises as a percentage.
C) fall when price falls.
D) fall when price rises.
E) rise less than price as a percentage.

Question

Quizplus · Accepted Answer

Inelastic demand means that consumers' total expenditures decrease when the price decreases, indicating that the percentage change in quantity demanded is less than the percentage change in price.

The Demand for a Product Is Said to Be Inelastic