If the demand for mobile phone service is inelastic, then________.
A)the percentage change in quantity demanded is greater than the percentage change in price (in absolute value).
B)the percentage change in quantity demanded is equal to the percentage change in price.
C)the quantity demanded does not change in response to changes in price.
D)the percentage change in quantity demanded is less than the percentage change in price (in absolute value).

Question

Quizplus · Accepted Answer

When demand is inelastic, it means that consumers are not very responsive to price changes. Therefore, the percentage change in quantity demanded is less than the percentage change in price (in absolute value). This is because consumers will continue to buy the product even if the price increases, or they will not significantly increase their consumption if the price decreases.

If the Demand for Mobile Phone Service Is Inelastic, Then________