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:

Low-ball Technique

A persuasion and sales strategy where an initial, lower price is offered to gain agreement from a buyer, only to increase the price by introducing additional costs or factors.

Social Loafing

A phenomenon observed in group settings wherein individuals put in less effort on a task when working collectively compared to when working individually.

Social Loafing

The phenomenon where individuals exert less effort when working in a group than when working alone.

Philip Zimbardo

An American psychologist known for his research on social influence and the dynamics of time perspective, notably leading the Stanford prison experiment.