Inelastic demand simply means that
A)buyers will not make a modified rebuy purchase.
B)when supply is reduced, the price will increase.
C)a price increase or decrease will not significantly change the demand for an item.
D)when price goes up, demand goes down.

Question

Quizplus · Accepted Answer

Inelastic demand means that a change in price will not have a significant impact on the demand for the product. This means that even if the price increases, buyers will still buy the product at a similar rate, and if the price decreases, the demand will not significantly increase. Therefore, option C is the correct answer. Option A is incorrect because modified rebuy is a decision-making process for business organizations and has nothing to do with the concept of inelastic demand. Option B is incorrect because an increase in price will not always lead to a decrease in demand, especially if the product has inelastic demand. Option D is incorrect because it describes the concept of elastic demand, which is the opposite of inelastic demand.

Inelastic Demand Simply Means That