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If the quantity demanded for a product changes very little as the price increases, this means that the product is:

a) Elastic
b) Inelastic

1 Answer

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Final answer:

A product that has a quantity demanded that changes very little with increased prices is described as having inelastic demand. It indicates low responsiveness to price changes, often because it is a necessity with few substitutes. Option b.

Step-by-step explanation:

If the quantity demanded for a product changes very little as the price increases, this means that the product is inelastic(b). An inelastic demand indicates that a given percentage change in price will cause a smaller percentage change in quantity demanded. When demand is inelastic, consumers are less sensitive to price changes, often because the product is considered a necessity or there are few available substitutes.

We can usefully divide elasticities into three broad categories: elastic, inelastic, and unitary. A product with elastic demand would show a greater change in quantity demanded in response to price changes. However, in this case, since the product's quantity demanded remains relatively stable despite price increases, it demonstrates inelastic demand.

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