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When is demand inelastic?
When is demand inelastic?
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Solution
Relatively inelastic demand occurs when the percentage change in demand is less than the percentage change in the price of a product.
For example, if the price of a product increases by 15% and the demand for the product decreases only by 7%, then the demand would be called relatively inelastic.
Relatively inelastic demand occurs when the percentage change in demand is less than the percentage change in the price of a product.
For example, if the price of a product increases by 15% and the demand for the product decreases only by 7%, then the demand would be called relatively inelastic.
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