When Demand Is Inelastic

question 162

Multiple Choice

When demand is inelastic

• A)the percentage change in quantity demanded is less than the percentage change in price.
• B)the buyer is insensitive to price changes.
• C)the elasticity coefficient is greater than zero,but less than one.
• D)all of these statement statements are true.

---

Definitions:

Benefits Principle

A concept suggesting that people should pay taxes based on the benefits they receive from government services, aiming for fairness in tax distribution.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Maximum Number

The highest attainable or allowed number, often used in contexts like optimizing outputs, capacities, or selections.

Progressive

A term often used to describe a tax system where the rate increases as the taxable amount increases, typically aimed at reducing income inequality.