Question

question 10
1 pts
if demand is inelastic, then...
buyers do not respond much to a change in price.
the demand curve is very flat.
buyers respond substantially to a change in price.
buyers alter their quantities demanded much in response to advertising, fads, or general changes in tastes.

Explanation:

To solve this, we recall the definition of inelastic demand: when demand is inelastic, the percentage change in quantity demanded is less than the percentage change in price, meaning buyers' quantity demanded doesn't change much with price changes.

• Option 1: Matches the definition of inelastic demand (buyers don't respond much to price changes).
• Option 2: A very flat demand curve is for elastic demand (large quantity response to price).
• Option 3: Substantial response to price is elastic demand.
• Option 4: Inelasticity is about price - quantity relationship, not advertising/tastes.

Answer:

A. buyers do not respond much to a change in price.