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13 April, 22:28

Consumers are price inelastic when a percentage: Question 18 options: a) change in demand does not exceed a percentage change in price. b) change in price does not exceed a percentage change in revenue. c) change in revenue does not exceed a percentage change in cost. d) decrease in price is offset by an increase in demand.

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  1. 14 April, 02:00
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    a.) change in demand does not exceed a percentage change in price.

    Explanation:

    Price elasticity in itself is used to evaluate how quantity demanded or supplied of a good responds to its price. Price inelasticity specifically occurs when there is only a small change in the quantity demanded of goods and services if there is a change in price. One percentage change in its price will lead to less than 1% change in the quantity demanded. An example of a good that has inelastic demand is gas. People who own cars would need gas so even if price goes up, the decrease in demand will be small.
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