Raising prices on inelastic products results in relatively fewer customers stopping purchases because they are less sensitive to price.

• A. Relatively fewer customers stopping purchases
• B. More customers stop buying
• C. No change in demand
• D. Demand becomes elastic

Answer: (A)

Inelastic demand means price changes don’t cause big swings in how much people buy. When you raise prices on an inelastic product, the number of customers who stop purchasing drops is small because these buyers aren’t very sensitive to price increases. So the outcome is that relatively fewer customers stop buying, which is why this choice fits best.

Context: essentials or goods with few substitutes often have inelastic demand, so higher prices may boost revenue even if some buyers drop off.

Why the other ideas don’t fit: a price rise on an inelastic good doesn’t trigger more people to stop buying (that would imply higher price sensitivity), nor does it produce no change in purchases (there is still some change, just small). The notion that demand becomes elastic isn’t what the scenario describes—the elasticity is a property of how responsive quantity is to price, not something that simply flips due to a single price increase.