If the quantity demanded of a certain good responds only slightly to a change in the price of the good,then the
A)demand for the good is said to be elastic.
B)demand for the good is said to be inelastic.
C)law of demand does not apply to the good.
D)demand curve for the good shifts only slightly in response to a change in price.

Question

Quizplus · Accepted Answer

A situation where the quantity demanded of a certain good responds only slightly to a change in the price of the good indicates that the demand for the good is inelastic. Inelastic demand means that consumers have limited choices or substitutes for that good and therefore, are willing to pay a higher price for it. Conversely, elastic demand means that the quantity demanded of a good changes significantly in response to a change in price.

If the Quantity Demanded of a Certain Good Responds Only