Inelastic Demand Is a Situation in Which

question 87

Multiple Choice

Inelastic demand is a situation in which:

• A)​an increase or a decrease in price does not significantly affect the demand for a product.
• B)prices are adjusted over time to maximize a company's revenues.
• C)demand is created for new products by aggressive brand awareness campaigns.
• D)​consumers' demand is sensitive to price changes.

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Definitions:

Nation's Total Income

The total amount of money earned within a country from the production of goods and services, before taxes and other deductions.

Utility

A measure of satisfaction, usefulness or pleasure a consumer obtains from consuming a good or service.

Redistribution of Income

A policy or practice by which income is redistributed from wealthier segments of society to poorer ones through mechanisms like taxation and government spending.

Income Distribution

The way in which a nation’s total income is spread among its population, often analyzed to understand the extent of economic inequality.