Insensitivity of Demand to Price Changes Is Called Demand Inelasticity

question 7

True/False

Insensitivity of demand to price changes is called demand inelasticity.

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Definitions:

Inelastic

Describes demand that is not very sensitive to changes in price, meaning that quantity demanded changes little when prices change.

Price Elasticity

A measure of how much the quantity demanded of a good changes in response to a change in price.

Infinitely Elastic

Describes a perfectly elastic demand or supply curve, where the quantity demanded or supplied changes by an unlimited amount in response to any change in price.

Income Elasticity

A measure of how the demand for a good or service changes in response to changes in income.