Inelastic demand in business markets refers to a situation where
A) demand for a given product fluctuates very little over time.
B) price increases or decreases will not significantly change demand for a given product.
C) demand for a given product fluctuates significantly over time.
D) demand for one product depends heavily on the demand for another product.
E) supply for a given product cannot keep pace with the demand for it.

Question

Quizplus · Accepted Answer

Inelastic demand means that changes in price do not significantly affect the demand for a product. So, even if the price increases, the demand for the product will not decrease significantly.

Inelastic Demand in Business Markets Refers to a Situation Where