An Inelastic Demand Indicates That

question 1

Multiple Choice

An inelastic demand indicates that

• A) quantity demanded does not vary with changes in the price.
• B) relatively small changes in price lead to relatively large changes in quantity demanded.
• C) relatively large changes in price are required to obtain a relatively small change in quantity demanded.
• D) relatively large changes in quantity demanded lead to relatively large changes in price.

---

Definitions:

Parol Evidence Rule

A legal principle stating that oral evidence cannot be used to contradict, modify, or add to the terms of a written contract.

Verbal Agreement

An arrangement or contract that is made through spoken word rather than written documentation, but can still be legally binding.

Specific Performance

A legal remedy requiring a party to fulfill their obligations under a contract, rather than paying damages.

Charitable Tax Relief

Tax deductions or exemptions offered to individuals or organizations for donations made to registered charitable entities.