Answer:
The answer is (A) an increase or a decrease in price does not significantly affect the demand for a product.
Explanation:
Inelastic demand refers to a condition where demand does not change even when price changes. An example of this is the demand for gasoline – even when price increases, the amount consumed by customers do not drop as drastically. There are two types of inelastic demand: relatively inelastic demand and perfectly inelastic demand. When the first occurs, high price increase is followed by a relatively low drop in demand. When the second occurs instead, high price increase is followed by no drop in demand.
