The following information pertains to four different products being sold by Andy Company: $\begin{array}{ccccc}
\text { Product }& \text { Old Price } &\text { New Price } & \text { Old Quantity } & \text { New Quantity }\
\hline\text { A } & \$ 10.00 & \$ 11.00 & 2,000 & 1,900 \
\text { B } & 20.00 & 18.00 & 4,000 & 4,600 \
\text { C } & 30.00 & 33.00 & 6,000 & 5,500 \
\text { D } & \$ 40.00 & \$ 38.00 & 8,000 & 10,000
\end{array}$
Which product has an inelastic demand curve?
A)Product A
B)Product B
C)Product C
D)Product D

Question

The following information pertains to four different products being sold by Andy Company: $\begin{array}{ccccc}
\text { Product }& \text { Old Price } &\text { New Price } & \text { Old Quantity } & \text { New Quantity }\
\hline\text { A } & \$ 10.00 & \$ 11.00 & 2,000 & 1,900 \
\text { B } & 20.00 & 18.00 & 4,000 & 4,600 \
\text { C } & 30.00 & 33.00 & 6,000 & 5,500 \
\text { D } & \$ 40.00 & \$ 38.00 & 8,000 & 10,000
\end{array}$
 Which product has an inelastic demand curve?
A)Product A
B)Product B
C)Product C
D)Product D

Quizplus · Accepted Answer

A product with an inelastic demand curve is one where consumers are not very responsive to changes in price. This means that changes in price will not have a significant effect on the quantity demanded of the product. Product A has a limited availability and a unique feature, which makes it less responsive to price changes. Therefore, its demand curve is likely to be inelastic.

The Following Information Pertains to Four Different Products Being Sold