The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-If a product has an inelastic demand, then:
A)there is probably a long time period under consideration.
B)as price increases, total revenue to producers decreases.
C)an increase in the price will decrease total consumer expenditures.
D)there are probably many complements for the good.
E)there are probably few substitutes for the good.

Question

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1
 
-If a product has an inelastic demand, then:
A)there is probably a long time period under consideration. 
B)as price increases, total revenue to producers decreases. 
C)an increase in the price will decrease total consumer expenditures. 
D)there are probably many complements for the good. 
E)there are probably few substitutes for the good.

Quizplus · Accepted Answer

Inelastic demand implies that the quantity demanded is not very responsive to changes in price. This is usually the case when there are few or no substitutes for the product, as consumers have limited alternatives to switch to in response to a price change.

The Figure Given Below Shows the Demand Curves for Five