Inelastic Demand Exists When

question 12

Multiple Choice

Inelastic demand exists when

• A)a small percentage decrease in price produces a smaller percentage increase in quantity demanded.
• B)a small percentage increase in price produces a larger percentage increase in quantity demanded.
• C)an increase in price is impossible due to government restrictions.
• D)the quantity demanded remains the same regardless of any changes in marketing strategies.
• E)the price is governed by outsides entities but the demand remains high due to these restrictions that make the product exclusive.

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Definitions:

Consent

The voluntary agreement to or permission for something, given by someone who is in a position to make informed decisions.

Research Study

A structured investigation designed to develop or contribute to generalizable knowledge based on systematic observation or experimentation.

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, hypothesis formulation, experimentation, and conclusion.

Services

Intangible products provided to consumers, which can range from financial services, educational services, to technological and personal services.