ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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elastic
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inelastic
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related
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rigid
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Detailed explanation-1: -If a price change for a product doesn’t lead to much, if any, change in its supply or demand, it is considered inelastic.
Detailed explanation-2: -An inelastic demand is one in which the change in quantity demanded due to a change in price is small.
Detailed explanation-3: -Inelastic demand occurs when the ratio of quantity demanded to price is between zero and one unit elastic. This typically occurs when a particular good or service lacks adequate substitutes and represents a necessity.
Detailed explanation-4: -Inelastic demand is when a buyer’s demand for a product does not change as much as its change in price. When price increases by 20% and demand decreases by only 1%, demand is said to be inelastic.
Detailed explanation-5: -Demand is considered inelastic if demand for a good or service remains unchanged even when the price changes, Elastic goods include luxury items and certain food and beverages as changes in their prices affect demand.