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Homework answers / question archive / The demand curve for physician office visits is quite inelastic; therefore: A) a large increase in price causes quantity demanded to decrease by very little
The demand curve for physician office visits is quite inelastic; therefore: A) a large increase in price causes quantity demanded to decrease by very little. B) a large decrease in price causes quantity demanded to decrease by a lot. C) a small increase in price causes quantity demanded to decrease by a lot. D) a small decrease in price causes quantity demanded to decrease by very little.
Answer
A )
Explanation
Price inelastic is when there is no change or very less change in demand due to changes in price. The inelasticity of demand curve in case of doctors' office visit indicate that even if the prices of the visit increases, it will be less importance to the number of patient visits. Patients will demand the same treatment even if the prices increases or decrease. So, the correct option is A "large increase in price causes quantity demanded to decrease by very little".
