The graph shows the price of a good compared to the quantity demanded.

This graph demonstrates how

the amount produced slightly changes with the price.
the amount produced greatly changes with the price.
the amount consumed slightly changes with the price.
the amount consumed greatly changes with the price.

This graph shows that the quantity demanded changes slightly when the price decreases. At the first moment, at the price of $ 50 the amount demanded is 15 units. After a significant price reduction, now $ 30, demand increased by only 5 units, totaling 20 units consumed. In microeconomic theory, the demand for this good is considered inelastic. A demand is inelastic when the reduction / increase in the price of the good is not accompanied by an increase / decrease in the demand for the good.

dubeyshailja64 dubeyshailja64 · Answer 2 · 2022-02-22T08:06:49+01:00

The given graph demonstrates that the demand is inelastic and how the amount consumed slightly changes with the price.

What is inelastic demand?

Demand for a good is said to be inelastic when the changes in price or other factors causes no or less change in the demand.

Price elasticity of demand is the change in demand due to change in price of a good. The price elasticity of demand is said to be inelastic when the changes in price doesn't changes the demand for a good or when the demand changes with a lower rate.

The graph demonstrates inelastic demand since the change in demand is less than the change in price.

Therefore the correct option is C.

Learn more about inelastic demand here:

https://brainly.com/question/25484804