If the demand for bread is inelastic, which scenario might occur?
A) A 10% increase in the price of bread causes a 10% decline in its quantity demanded.
B) A 5% increase in the price of bread causes a 10% decline in its quantity demanded.
C) A 10% increase in the price of bread causes a 5% decline in its quantity demanded.
D) A 5% decrease in the price of bread causes a 10% increase in its quantity demanded.

Question

Quizplus · Accepted Answer

When demand is inelastic, a percentage increase in price leads to a smaller percentage decrease in quantity demanded, as seen in option C.

If the Demand for Bread Is Inelastic, Which Scenario Might