People who buy good Z are typically in a hurry when they buy it. Good Z has _____ demand, and if the seller increases the price of good Z, its total revenue will:
A) unit elastic; not change.
B) inelastic; increase.
C) elastic; increase.
D) inelastic; decrease.

Question

Quizplus · Accepted Answer

Goods that are typically bought in a hurry often have inelastic demand because consumers are less sensitive to price changes when they need something quickly. Therefore, if the seller increases the price, total revenue will increase because the percentage decrease in quantity demanded is less than the percentage increase in price.

People Who Buy Good Z Are Typically in a Hurry