If recent sharp increases in the price of a life-saving drug have had only a small effect on the amount of the drug purchased, then the demand for the drug is said to be:
A)relatively elastic.
B)relatively inelastic.
C)unit elastic.
D)perfectly inelastic.
E)perfectly inelastic

Question

Quizplus · Accepted Answer

If the sharp increase in the price of a life-saving drug has a small effect on the amount of the drug purchased, it indicates that the demand for the drug is relatively inelastic. This means that the consumers of the drug are not very sensitive to changes in its price and are willing to pay a higher price for the drug, even if it is essential for their survival or well-being. In other words, the demand for the drug is relatively insensitive to changes in its price, which signifies a relatively inelastic demand.

If Recent Sharp Increases in the Price of a Life-Saving