The Pure Drug Company produces insulin, a product with a very stable demand. Even though the price changed several times in the past two years, the demand for Pure Drug's insulin remained relatively unaffected. In this instance, the demand for insulin is representative of ________ demand.

Question

Quizplus · Accepted Answer

The fact that the demand for Pure Drug's insulin remained relatively unaffected despite price changes suggests that the demand is inelastic, meaning that changes in price have little effect on the quantity demanded.

The Pure Drug Company Produces Insulin, a Product with a Very