Explain the term inelastic demand.
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What do you mean by inelastic demand?
A good that takes up a very large percentage of the consumer's budget will tend to have
Ā
an elastic demand.
a perfectly elastic demand.
an inelastic demand.
an upward-sloping demand curve.
very many substitutes.
A pure monopolist should never produce in the:
Elastic segment of its demand curve because it can increase total revenue and reduce total cost by lowering the price.
Inelastic segment of its demand curve because it can increase total revenue and reduce total cost by increasing the price.
Inelastic segment of its demand curve because it can always increase total revenue by more than it increases total cost by reducing the price.
Segment of its demand curve where the price elasticity coefficient is greater than one.
