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Assume that the demand for plastic (cosmetic) surgery is price inelastic. Are the following statements true...

Assume that the demand for plastic (cosmetic) surgery is price inelastic. Are the following statements true or false? Explain.

a. When the price of plastic surgery increases, the number of operations decreases.

b. The percentage change in the price of plastic surgery is less than the percentage change in quantity demanded.

c. Changes in the price of plastic surgery will affect the number of operations slightly.

d. Quantity demanded is quite responsive to changes in price.

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Answer #1

As the demand for plastic surgery is price inelastic that means as the price increase the demand will not fall in the same proportion but less.

a) Yes, as the demand is price inelastic the demand will not fall due to an increase in the price. The answer is "True"

b) "False": its just the opposite, the percentage change in the demand will be less than the percentage change in the price.

c) "true"

Due to inelastic demand the number of operations will be slightly affected.

d) "False"

The demand is unresponsive i.e. inelastic.

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