Multiple choice

When demand for a product is_____, an increase or decrease in the price of a product will not significantly affect demand for the product.

  1. responsive

  2. elastic

  3. inelastic

  4. derived

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Inelastic demand means price changes have minimal impact on quantity demanded. Essential business products (manufacturing components, critical supplies) often exhibit inelastic demand because operations can't easily substitute or reduce usage. This contrasts with elastic demand (price-sensitive) or derived demand (demand based on another product's demand). The key is that quantity remains relatively stable despite price fluctuations.