You recently raised your prices on the products you sell to your business customers.To your surprise,your customers did not change the number of units they purchase from you.It was as if the price increase did not matter to your customers.Which of the following types of business demand most accurately describes this situation?

Question

You recently raised your prices on the products you sell to your business customers.To your surprise,your customers did not change the number of units they purchase from you.It was as if the price increase did not matter to your customers.Which of the following types of business demand most accurately describes this situation?​

Quizplus · Accepted Answer

Since the customers did not change the number of units they purchased despite the price increase, it suggests that the demand for the product is inelastic. Inelastic demand means that the change in price has a relatively small effect on the quantity demanded.

You Recently Raised Your Prices on the Products You Sell