question archive An inelastic demand indicates that A
An inelastic demand indicates that A
Subject:EconomicsPrice:2.88 Bought4
An inelastic demand indicates that
A. quantity demanded does not vary with changes in the price.
B. relatively large changes in quantity demanded lead to relatively large changes in price.
C. relatively large changes in price are required to obtain a relatively small change in quantity demanded.
D. relatively small changes in price lead to relatively large changes in quantity demanded.
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
The correct option is (c).
An inelastic demand indicates that relatively large changes in price are required to obtain a relatively small change in quantity demanded.
A commodity with inelastic demand is the one whose demand does not change much when there are smaller changes in its prices. These goods includes necessity goods for example salt, bread etc.
