If demand is price inelastic, then<\/p>\n\n\n\n
a. buyers do not respond much to a change in price.
b. buyers respond substantially to a change in price, but the response is very slow.
c. the demand curve is very flat.
d. nothing happens.<\/p>\n\n\n\n
The correct answer and explanation is :<\/strong><\/mark><\/p>\n\n\n\n The correct answer is: Price elasticity of demand refers to the degree to which the quantity demanded of a good responds to changes in its price. In the context of inelastic demand<\/strong>, the quantity demanded changes very little or not at all when there is a price change. This concept is often discussed in terms of price elasticity of demand (PED), where the elasticity coefficient is less than 1 (|PED| < 1).<\/p>\n\n\n\n When demand is price inelastic<\/strong>, it means that consumers’ purchasing behavior is not very sensitive to price changes. This occurs because the good in question is typically a necessity, has few or no close substitutes, or is relatively inexpensive relative to a consumer’s income. For example, products like basic medications or utilities (such as water or electricity) tend to have inelastic demand because consumers will still buy them even if prices increase.<\/p>\n\n\n\n In the case of inelastic demand, a price increase will lead to a relatively small decrease in the quantity demanded. Conversely, a price decrease will not lead to a significant increase in demand. This is contrary to elastic demand (where the absolute value of PED is greater than 1), where consumers are very responsive to price changes.<\/p>\n\n\n\n Now, let’s review the other options:<\/p>\n\n\n\n In summary, inelastic demand indicates that buyers do not significantly alter their purchasing habits in response to price changes.<\/p>\n","protected":false},"excerpt":{"rendered":" If demand is price inelastic, then a. buyers do not respond much to a change in price.b. buyers respond substantially to a change in price, but the response is very slow.c. the demand curve is very flat.d. nothing happens. The correct answer and explanation is : The correct answer is:a. buyers do not respond much […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-636","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/636","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/comments?post=636"}],"version-history":[{"count":1,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/636\/revisions"}],"predecessor-version":[{"id":637,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/636\/revisions\/637"}],"wp:attachment":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/media?parent=636"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/categories?post=636"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/tags?post=636"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
a. buyers do not respond much to a change in price.<\/strong><\/p>\n\n\n\nExplanation:<\/h3>\n\n\n\n
\n