To say that demand is inelastic means that
A) people do not like the good very much.
B) quantity demanded not very responsive to price changes.
C) relatively small changes in price lead to relatively large changes in quantity demanded.
D) relatively small changes in quantity demanded lead to relatively small changes in price.

Question

Quizplus · Accepted Answer

Inelastic demand means that changes in price have little effect on the quantity demanded, suggesting that the good is necessary for consumers and has few substitutes. Options A and C are incorrect because they suggest a strong preference for the good, which is not necessarily related to the elasticity of demand. Option D is incorrect because it suggests a high level of responsiveness to changes in quantity demanded, which would indicate elastic demand.

To Say That Demand Is Inelastic Means That