Asked by
hazel faith dorohum
on Oct 08, 2024
Verified
If the demand for product X is inelastic,a 4 percent increase in the price of X will:
A) decrease the quantity of X demanded by more than 4 percent.
B) decrease the quantity of X demanded by less than 4 percent.
C) increase the quantity of X demanded by more than 4 percent.
D) increase the quantity of X demanded by less than 4 percent.
Inelastic
Describes a situation where the quantity demanded or supplied of a good or service changes by a relatively small amount in response to changes in its price.
Quantity Demanded
The amount of a product or service consumers are willing and able to buy at a given price over a specified period of time.
- Interpret the effects of elasticity on total revenue and expenditure.
- Discern the contexts in which demand is categorized as elastic or inelastic.
Verified Answer
NM
Learning Objectives
- Interpret the effects of elasticity on total revenue and expenditure.
- Discern the contexts in which demand is categorized as elastic or inelastic.