Along an inelastic demand curve the:

A. Change in price will always be less than the change in quantity demanded.

B. Percentage change in price will be less than the percentage change in quantity demanded.

C. Change in price will always be more than the change in quantity demanded.

D. Percentage change in price will be more than the percentage change in quantity demanded.

When a firm's price cut produces a smaller than proportional increase in quantity demanded, the demand for its product is:

A. eslastic

B. inelastic

C. of unit elasticity

D. straight elastic

Question 1):

Along an inelastic demand curve, the (C) change in price will always be more than the change in quantity demanded.

The demand curve shows the relationship between the quantity demanded of a good or service and its price. With an inelastic demand curve, the quantity demanded is said to be less responsive to changes in the price. Therefore, an increase in price will cause a smaller decrease in the quantity demanded than the proportionate increase in price and a decrease in price will lead to a smaller increase in the quantity demanded than the proportionate decrease in price.

Question 2):

When a firm's price cut produces a smaller than proportional increase in quantity demanded, the demand for its product is (B) inelastic.

When the change in price results to a change in quantity demanded that is less than the change in price, the demand is said to be inelastic.