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Moving along the inelastic portion of a demand curve the change in quantity demanded will always be proportionately less then the change in price
Moving along the inelastic portion of a demand curve the change in quantity demanded will always be proportionately less then the change in price. True or false?
Expert Solution
This statement is true.
The inelastic demand curve means that the responsiveness change of the price on the quantity level is very less. The inelastic demand curve is of vertical shape and the change in price level does not change the quantity demanded for the good as all. But when it is inelastic then, the change in quantity level due to the price level is very less. In simple terms, the change is moving along the inelastic portion of a demand curve the change in quantity demanded will always be proportionately less than the change in price
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