Assume the Demand for a Good Is Price Inelastic, I

Multiple Choice

Assume the demand for a good is price inelastic, i.e., e_d < 1. This means that if price decreases by 50 percent, quantity demanded will:

A) increase by more than 50 percent.
B) decrease by more than 50 percent.
C) increase by less than 50 percent.
D) decrease by less than 50 percent.