In microeconomics, if the demand for a good is said to be inelastic with respect to price, what does this imply about how quantity demanded responds to price changes?

Introduction / Context:
The idea of elasticity is central in economics because it tells us how strongly buyers and sellers react when prices change. When a good is described as inelastic, many students confuse this with low demand or low interest in the product. In reality, inelastic demand or supply has a very specific technical meaning related to responsiveness, not popularity. This question checks whether you understand that distinction and can correctly interpret the term inelastic in the context of price changes.

Given Data / Assumptions:
- We are talking about elasticity with respect to price, not income or other factors.
- The term inelastic is used in its standard microeconomics sense.
- The good still has active buyers and sellers in the market.
- The comparison is between sensitivity and insensitivity of quantity to price changes.

Concept / Approach:
Price elasticity of demand measures the percentage change in quantity demanded divided by the percentage change in price. If elasticity is less than 1 in absolute value, demand is called inelastic. This does not mean demand is zero or that consumers dislike the good. It means that quantity demanded changes proportionally less than price. Typical examples include necessities like salt, basic medicines, or electricity, where people still buy close to the same amount even if the price rises. The same idea can apply on the supply side when supply is inelastic because producers cannot quickly change output.

Step by Step Solution:
Step 1: Recall that inelastic means elasticity less than 1 in absolute value, so quantity responds weakly to price changes. Step 2: Read option A, which states that quantity demanded or supplied is not very sensitive to changes in price. This matches the core idea of low responsiveness. Step 3: Option B suggests consumers have lost interest in the good completely, which would lead to zero demand rather than inelastic demand. Step 4: Option C talks about producers losing interest in manufacturing, which is not the definition of inelasticity, and also focuses only on producers. Step 5: Option D describes extremely high sensitivity, which corresponds to elastic demand or supply, not inelastic. Therefore, option A is correct.

Verification / Alternative check:
You can test the logic using a concrete example. Suppose the price of a life saving medicine increases by 20 percent. If demand is inelastic, patients may reduce quantity demanded by only 2 or 3 percent because they still need it. The ratio of percentage changes is less than 1, so demand is inelastic. This shows low sensitivity, which is exactly what option A describes. In contrast, for luxury goods with elastic demand, a similar price increase could cause a large drop in quantity demanded, which does not fit the term inelastic.

Why Other Options Are Wrong:
Option B is wrong because loss of all interest in purchasing would imply no demand, not inelastic demand. Inelastic demand still involves active buying.
Option C is wrong because it describes producers losing interest, which is not what the term inelastic refers to. Elasticity is about responsiveness to price, not motivation.
Option D is wrong because very high sensitivity to price is the opposite situation and would be called elastic, not inelastic.

Common Pitfalls:
Students sometimes think inelastic means something like rigid or not moving at all, so they assume quantity never changes. In reality, inelastic demand still changes with price, just not much. Another pitfall is confusing inelastic with low demand or poor popularity. A good can be very popular and still have inelastic demand, such as petrol. Remember that elasticity is always about percentage responsiveness, not about whether people like or dislike a product.

Final Answer:
Its quantity demanded or supplied is not very sensitive to changes in price.