If the quantity demanded responds very much to the change in price, it means that: Odemand is unitary elastic Odemand is inelastic. Odemand is elastic Odemand is perfectly elastic Odemand is perfectly inelastic
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Akash M.
Inelastic demand exists when a small percentage decrease in price produces a smaller percentage increase in quantity demanded. the quantity demanded remains the same regardless of any changes in marketing strategies. the price is governed by outsides entities but the demand remains high due to these restrictions that make the product exclusive. a small percentage increase in price produces a larger percentage increase in quantity demanded. an increase in price is impossible due to government restrictions.
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Suppose the demand curve for hybrid cars shifts to the right. This will cause a relatively small increase in the price of hybrid cars if: demand is inelastic and supply is perfectly inelastic; both demand and supply are inelastic; demand is elastic and supply is inelastic; both demand and supply are elastic.
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