Question

Demand is said to be inelastic if a. buyers respond substantially to changes in the price of the good. b. demand shifts only slightly when the price of the good changes. c. the quantity demanded changes only slightly when the price of the good changes. d. the price of the good responds only slightly to changes in demand.

Answer 1

Answer:

Demand is said to be inelastic when the percentage change in the price of the good causes a lower percentage change in the quantity demanded of the good. So for eg if the price of milk falls 10% but its quantity demanded only increases by 5%, we can say that milk has inelastic demand

So in the case the answer is c. the quantity demanded changes only slightly when the price of the good changes.

Explanation: