If demand is inelastic and the price of a product decreases by 100 percent, then
A) the change in quantity demanded is less than 100 percent.
B) the change in quantity demanded is equal to 100 percent.
C) the change in quantity demanded is greater than 100 percent.
D) the decrease in quantity demanded is greater than 0 percent.

Question

Quizplus · Accepted Answer

Inelastic demand means that a change in price will result in a proportionally smaller change in quantity demanded. Therefore, even if the price decreases by 100 percent, the change in quantity demanded will not be as much and will be less than 100 percent.

If Demand Is Inelastic and the Price of a Product