9
QuizMultiple Choice

Microeconomics — Test

Question 9 • Personal Finance and Economics

In economics, if a good is inelastic,

Answer
A
its supply or demand is too sensitive to price changes.
B
producers have lost an interest in manufacturing it.
C
its supply or demand is not sensitive to price changes.
D
consumers have lost an interest in purchasing it.

Explanation

A good is inelastic when the quantity supplied or demanded changes very little in response to a change in price. In other words, its supply or demand is not sensitive to price changes, which matches choice C. It does not mean consumers or producers have lost interest, or that quantity changes a lot when price changes.

AI-written and checked against the verified answer.

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