When is demand said to be inelastic
A)when the quantity demanded changes proportionately more than price
B)when the quantity demanded changes proportionately more than income
C)when the quantity demanded changes proportionately less than price
D)when the quantity demanded changes proportionately less than income

Question

Quizplus · Accepted Answer

Demand is said to be inelastic when the quantity demanded changes proportionately less than price. This means that a change in price does not have a significant impact on the quantity demanded. In other words, consumers are not very sensitive to changes in price and will continue to buy similar quantities even if the price changes. This is typically the case for essential goods or goods that have few substitutes.

When Is Demand Said to Be Inelastic