Question

Inland eastex inc. manufactures toothpastes. even when the company increased the price of its toothpastes last year, the sales did not drop. this is an example of _____.

Answer 1

This is an example of INELASTIC DEMAND.
Inelastic demand refers to the type of demand in which the percentage change in demand is less than the percentage change in price. That is, the increase in the price of the product does not bring a corresponding change in the demand for the products, consumers are still buying the product even though its price has increased.