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) a small percentage decrease in price produces a smaller percentage increase in quantity supplied.

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Definitions:

Experimental Approach

A method of research in psychology and other sciences involving the manipulation of variables to observe the effect on some behavior or mental process.

Manipulating

The process of altering variables in an experimental setting to determine their effects on dependent variables.

Variables

Elements, factors, or conditions that can change and affect the outcomes of experiments and studies in various fields, especially in research and statistics.

Dependent Variable

The variable being tested and measured in an experiment, which is expected to change as a result of manipulations of the independent variable.