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In economics, if a good is inelastic,

Correct Answer: 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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