Question

Now suppose that the demand for bell peppers is relatively inelastic. How will this change your answer to the previous question?

Answer 1

Answer:

D.  Price will increase by a larger increment and the quantity will decrease by a smaller increment

Explanation:

here is the full question :

he market for bell peppers is competitive. For bell peppers to grow properly they need substantial rainfall. A very dry winter in California did not produce enough rain to grow bell peppers in California, one of the major bell pepper growing regions of the world.

Now suppose that the demand for bell peppers is relatively inelastic. How will this change your answer to the previous question?

A.  Price will increase by a smaller increment and the quantity will decrease by a larger increment

B.  Price will increase by a smaller increment and the quantity will decrease by a larger increment.

C.  Price will increase by a larger increment and the quantity will decrease by a larger increment

D.  Price will increase by a larger increment and the quantity will decrease by a smaller increment

Demand is inelastic if a small change in price has little or no effect on quantity demanded.

due to the low rainfall, less pepper would be produced. as a result the supply of pepper would rise. since the demand for pepper is inelastic, the rise in price would be greater than the change in quantity demanded.