Which one of the following statements is correct? Demand is described by economists as inelastic where:
A)As prices increase demand is likely to fall
B)Customers are relatively indifferent to the product
C)Customers place a high value on the product
D)Demand is highly sensitive to changes in price

Question

Quizplus · Accepted Answer

Inelastic demand means that consumers place a high value on the product and are less sensitive to price changes, so demand doesn't decrease significantly when prices increase.

Which One of the Following Statements Is Correct? Demand Is