The following information pertains to three different products being sold by Modular Company: Which products have an inelastic demand curve?
A) Product C
B) Product B
C) Product A
D) both Product A and Product C

Question

The following information pertains to three different products being sold by Modular Company:  Which products have an inelastic demand curve?
A) Product C 
B) Product B 
C) Product A 
D) both Product A and Product C

Quizplus · Accepted Answer

A product with an inelastic demand curve means that the change in price does not significantly affect the demand for the product. Looking at the given information, we can see that Product A has a unique feature and is highly specialized, which may indicate that the demand for the product is inelastic. Similarly, Product C has a high level of necessity, which means that customers may still purchase the product despite a price increase. Therefore, both Product A and Product C have an inelastic demand curve.

The Following Information Pertains to Three Different Products Being Sold