Q:
      
      
         
            
In economics, if a good is inelastic,
         
       
      
      
      
          
      
      
          Answer & Explanation
         Answer: A) its supply or demand is not sensitive to price changes.         
         
Explanation: If the percent change in quantity demanded is less than the percent change in price, economists label the demand for the good as inelastic.
A good that is inelastic does not have very stretchy demand. In economic terms, the quantity demanded does not change a lot when the price changes.
 
So, if the price of a good increases by 10 percent and the quantity demanded decreases by only 5 percent or less than 10, that good is said to have inelastic demand.
 
Hence, in this case, consumers are not considered very sensitive, or responsive, to a change in the price of that good.
       
      
      
      
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