Question

If the demand for cell phone service is inelastic, then the quantity demanded does not change in response to changes in price. the percentage change in quantity demanded is greater than the percentage change in price (in absolute value). the percentage change in quantity demanded is less than the percentage change in price (in absolute value). the percentage change in quantity demanded is equal to the percentage change in price.

Answer 1

Answer:

the percentage change in quantity demanded is less than the percentage change in price (in absolute value).

Explanation:

Inelastic demand is when the demand for a product remains relatively constant, even if its price changes. Goods and services considered essential have inelastic demand. Foods stuff and petrol will have a constant demand regardless of their price levels.

A small percentage change in the price of an inelastic good or service will have minimal changes in its demand. For example, drinking water is an essential commodity. A small change in its price will not have any significant change in demand because people will need to drink water regardless of its price. Therefore, a small percentage change in price causes a lesser percentage change in quantity demanded.