Asked by sujana dontukurthy on Jun 04, 2024
Verified
Demand is inelastic when
A) the percentage change in quantity is greater than percentage change in price.
B) the percentage change in price is greater than percentage change in quantity.
C) the percentage change in price is equal to percentage change in quantity.
Inelastic
A characteristic of a good where its demand does not significantly change with changes in price.
Percentage Change
A mathematical calculation that describes the relative change between an old value and a new value, expressed as a percentage.
- Capture the essence and outcomes related to the price elasticity of demand.
Verified Answer
AS
Angie StefaniJun 09, 2024
Final Answer :
B
Explanation :
Demand is considered inelastic when the percentage change in price leads to a smaller percentage change in quantity demanded. This means consumers are less sensitive to price changes.
Learning Objectives
- Capture the essence and outcomes related to the price elasticity of demand.
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