Suppose you observe that minor changes in supply seem to cause dramatic changes in price with only slight changes in the amount sold, you would conclude that
A)demand is unit elastic.
B)demand is inelastic.
C)demand is elastic.
D)demand is perfectly inelastic.

Question

Quizplus · Accepted Answer

When demand is inelastic, it means that consumers are not very responsive to price changes. Therefore, even minor changes in supply (and consequently in price) will not significantly alter the quantity demanded, leading to dramatic price changes with only slight changes in the amount sold.

Suppose You Observe That Minor Changes in Supply Seem to Cause