Answered

Which statement best illustrates the concept of inelastic demand for a product?

A. A watch company raises its prices after a celebrity is seen wearing one of its products.
B. A restaurant begins to see fewer customers each month after raising its prices.
C. A truck driver has to buy the same amount of gas each month regardless of price.
D. A farmer tries to grow a variety of different fruits in case the price of one goes down.



Answer :

Final answer:

Inelastic demand involves a constant quantity demanded despite price changes, illustrated by examples like a truck driver buying the same amount of gas monthly.


Explanation:

Inelastic demand refers to a situation where the quantity demanded of a product remains relatively constant regardless of price changes. This means that consumers are not very responsive to price fluctuations.

An example of inelastic demand is when a truck driver has to buy the same amount of gas each month regardless of price. In this case, the quantity demanded remains the same even if the price of gas goes up or down.

Inelastic demand can also be seen in situations where certain goods like essential products have limited substitutes, making consumers willing to pay higher prices to meet their needs.


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