Asked by
Traveler’s Corner
on Nov 25, 2024
Verified
If the demand for product X is inelastic, a 4 percent decrease in the price of X will
A) decrease the quantity of X demanded by more than 4 percent.
B) decrease the quantity of X demanded by less than 4 percent.
C) increase the quantity of X demanded by more than 4 percent.
D) increase the quantity of X demanded by less than 4 percent.
Price Inelastic
Refers to a situation where demand or supply for a product is relatively unresponsive to price changes.
- Comprehend the principle of price elasticity in both supply and demand.
- Distinguish among various types of supply and demand: elastic, inelastic, unitary, perfectly inelastic, and perfectly elastic.
Verified Answer
AM
Learning Objectives
- Comprehend the principle of price elasticity in both supply and demand.
- Distinguish among various types of supply and demand: elastic, inelastic, unitary, perfectly inelastic, and perfectly elastic.