Inelastic demand is a situation in which:
A)an increase or a decrease in price does not significantly affect the demand for a product.
B)prices are adjusted over time to maximize a company's revenues.
C)demand is created for new products by aggressive brand awareness campaigns.
D)consumers' demand is sensitive to price changes.

Question

Inelastic demand is a situation in which:
A)​an increase or a decrease in price does not significantly affect the demand for a product.
B)prices are adjusted over time to maximize a company's revenues.
C)demand is created for new products by aggressive brand awareness campaigns.
D)​consumers' demand is sensitive to price changes.

Quizplus · Accepted Answer

Inelastic demand means that consumers are not very responsive to changes in the price of a product. This can happen with essential goods, such as food or medications, where consumers will continue to buy them even if the price goes up because they need them regardless of the cost. Inelastic demand can also be the case with luxury goods that have a high cultural or social value that makes the consumer willing to pay a premium price for them.

Inelastic Demand Is a Situation in Which