Questions

Many toxic gases along with water vapour are emitted in vocanic eruptions. All such toxic gases include hydrochloric acid, sulfur dioxide, carbon dioxide, hydrogen sulfide and carbon monoxide. Methane is not produced in the volcanic eruptions.

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.

Simhika