Question

Demand is inelastic when the: Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices price elasticity is infinity. quantity demanded changes by a very large amount in response to a small change in price. quantity demanded responds only slightly to a change in price. demand curve is horizontal.

Answer 1

Answer:

The correct answer is: quantity demanded responds only slightly to a change in price.

Explanation:

Demand is said to be inelastic when a proportionate change in the price level causes a less than proportionate change in quantity demanded. In other words, when the quantity demanded changes only a little due to the change in price.

The value of price elasticity, in this case, is less than one. The demand curve is steeper.

Demand is said to be perfectly inelastic when quantity demanded does not change at all because of a change in price. The elasticity of demand is zero and the demand curve is a vertical line in this case.