Inelastic demand implies
A) that a one percent increase in price results in a smaller than one percent decrease in quantity demanded.
B) that a one percent increase in price results in a larger than one percent decrease in quantity demanded.
C) that a one percent cut in price results in a larger than one percent increase in quantity demanded.
D) that a one percent decrease or increase in price induces no change in total revenue.

Question

Quizplus · Accepted Answer

Inelastic demand means that the percentage change in quantity demanded is less than the percentage change in price, indicating consumers are less sensitive to price changes.

Inelastic Demand Implies