The demand for a product is inelastic with respect to price if
A)consumers are largely unresponsive to a per unit price change.
B)the elasticity coefficient is greater than 1.
C)a drop in price is accompanied by a decrease in the quantity demanded.
D)a drop in price is accompanied by an increase in the quantity demanded.

Question

Quizplus · Accepted Answer

When demand is inelastic with respect to price, it means consumers are largely unresponsive to changes in the price per unit. This implies that even if the price increases or decreases, the quantity demanded does not change significantly.

The Demand for a Product Is Inelastic with Respect to Price