If demand is inelastic and the price of a product decreases by 10 percent, then
A) the change in quantity demanded is less than 10 percent.
B) the change in quantity demanded is equal to 10 percent.
C) the change in quantity demanded is greater than 10 percent.
D) the decrease in quantity demanded is greater than 0 percent.

Question

Quizplus · Accepted Answer

If demand is inelastic, it means that the change in price does not significantly affect the quantity demanded. Therefore, a 10 percent decrease in price will result in a smaller percentage increase in quantity demanded. The change in quantity demanded will be less than 10 percent.

If Demand Is Inelastic and the Price of a Product