Consumers are price inelastic when a percentage: question 18 options: a) change in demand does not exceed a percentage change in price. b) change in price does not exceed a percentage change in revenue. c) change in revenue does not exceed a percentage change in cost. d) decrease in price is offset by an increase in demand.

a.) change in demand does not exceed a percentage change in price.

Explanation:

Price elasticity in itself is used to evaluate how quantity demanded or supplied of a good responds to its price. Price inelasticity specifically occurs when there is only a small change in the quantity demanded of goods and services if there is a change in price. One percentage change in its price will lead to less than 1% change in the quantity demanded. An example of a good that has inelastic demand is gas. People who own cars would need gas so even if price goes up, the decrease in demand will be small.

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