"Inelastic demand" means that
A)quantity demanded is very sensitive to price.
B)quantity demanded is not very sensitive to price.
C)price is very sensitive to quantity demanded.
D)price is not very sensitive to quantity demanded.

Question

Quizplus · Accepted Answer

Inelastic demand means that the quantity demanded is not very sensitive to price. This means that even if the price of a good or service increases, the demand for it will not decrease much, and vice versa. In contrast, elastic demand means that the quantity demanded is very sensitive to price, so small changes in price can result in large changes in demand.

"Inelastic Demand" Means That