When demand is inelastic
A)the percentage change in quantity demanded is less than the percentage change in price.
B)the buyer is insensitive to price changes.
C)the elasticity coefficient is greater than zero,but less than one.
D)all of these statement statements are true.

Question

Quizplus · Accepted Answer

All of the statements accurately describe characteristics of inelastic demand. In inelastic demand, the percentage change in quantity demanded is indeed less than the percentage change in price, indicating that consumers are not very responsive to price changes. This is also why buyers are described as being insensitive to price changes. The elasticity coefficient being greater than zero but less than one is the mathematical representation of inelastic demand.

When Demand Is Inelastic