Asked by
diana villagomez
on Nov 25, 2024
Verified
The demand for a product is inelastic with respect to price if
A) consumers are largely unresponsive to a per unit price change.
B) the elasticity coefficient is greater than 1.
C) a drop in price is accompanied by a decrease in the quantity demanded.
D) a drop in price is accompanied by an increase in the quantity demanded.
Price Inelastic
Price inelastic refers to a situation where the demand for a good or service is relatively unaffected by changes in its price, indicating that consumers continue to purchase the product even if its price rises or falls significantly.
- Gain an understanding of the notion of price elasticity associated with supply and demand.
- Differentiate among the five categories of supply and demand elasticity: elastic, inelastic, unitary, perfectly elastic, and perfectly inelastic.
Verified Answer
JB
Learning Objectives
- Gain an understanding of the notion of price elasticity associated with supply and demand.
- Differentiate among the five categories of supply and demand elasticity: elastic, inelastic, unitary, perfectly elastic, and perfectly inelastic.