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10 January, 14:37

Inelastic demand exists when a small percentage decrease in price produces a smaller percentage increase in quantity demanded. the quantity demanded remains the same regardless of any changes in marketing strategies. the price is governed by outsides entities but the demand remains high due to these restrictions that make the product exclusive. a small percentage increase in price produces a larger percentage increase in quantity demanded. an increase in price is impossible due to government restrictions.

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  1. 10 January, 17:55
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    The answer in this question is a small percentage increase in price produces a smaller percentage decrease in quantity demanded and total revenue falls. The demand is a price elastic when a small percentage up or increase in price produces a smaller percentage down or decrease in quantity demanded and the total revenue falls.
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