A price inelastic demand exists if a 10 percent change in the price of a good results in a percentage change (in absolute value terms) in quantity demanded that is:
A) less than 0.
B) greater than 0 but less than 10.
C) equal to 10.
D) greater than 10.

Question

Quizplus · Accepted Answer

Price inelastic demand occurs when the percentage change in quantity demanded is less than the percentage change in price, which is described by option B (greater than 0 but less than 10).

A Price Inelastic Demand Exists If a 10 Percent Change