A Product with an Inelastic Demand Means That

question 118

Multiple Choice

A product with an inelastic demand means that

• A)consumers are relatively insensitive to a change in the price of the product.
• B)producers are relatively sensitive to a change in the quantity demanded.
• C)consumers are relatively sensitive to a change in the price of the product.
• D)producers are relatively insensitive to a change in the quantity demanded.
• E)consumers are relatively insensitive to a change in the quantity demanded.

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Definitions:

Industry

Refers to the production of goods or services within an economy, categorized into sectors such as manufacturing, services, and agriculture.

Firms

Business organizations engaged in offering goods or services to consumers, often characterized by the ownership structure and size.

Concentrated

Concentrated refers to a situation or market in which a few firms hold a large market share, leading to reduced competition and higher barriers to entry.

Industry X

A placeholder name used for referring to a specific but unnamed industry or sector in a generic context.