The following information pertains to three different products being sold by Andy Company: Which products have an inelastic demand curve?

A) Product A
B) Product B
C) Product C
D) both Product A and Product C

Question

The following information pertains to three different products being sold by Andy Company: Which products have an inelastic demand curve?

A) Product A 
B) Product B 
C) Product C 
D) both Product A and Product C

Quizplus · Accepted Answer

A product with an inelastic demand curve is one where the quantity demanded does not change significantly in response to a change in price. This means that the consumers are less sensitive to the price changes of the product. Based on the information provided, Product A has a unique feature that cannot be found in other competitors, which can make consumers less sensitive to price changes. On the other hand, Product C is a necessity good, and consumers may continue to purchase it regardless of the price changes. Therefore, both Product A and Product C are likely to have an inelastic demand curve.

The Following Information Pertains to Three Different Products Being Sold