When an increase or decrease in the price of the product will not significantly affect demand for the product,what is the demand for the product?

Question

Quizplus · Accepted Answer

When a change in price has little or no effect on demand, the demand is said to be inelastic. This means that consumers are not highly sensitive to price changes and will continue to buy the product despite price increases. In contrast, elastic demand means that consumers are highly sensitive to price changes and will adjust their buying behavior accordingly. Therefore, option C - inelastic - is the correct answer.

When an Increase or Decrease in the Price of the Product