How does relatively inelastic demand behave with price changes?

When examining relatively inelastic demand, it’s important to understand the basic principle that this type of demand does not respond strongly to price changes. In the case of inelastic demand, consumers are less sensitive to price fluctuations, meaning that even if the price decreases, the quantity demanded doesn’t significantly increase.

For the option stating that sales slightly decrease with a price decrease, this captures the essence of inelastic demand. While there may be some reduction in sales because a lower price might attract some additional buyers, the overall change in quantity demanded remains small compared to the price change. This behavior reflects consumers' necessity for the product, indicating that they will buy a relatively consistent amount regardless of minor price variations.

In contrast, the other available options don't accurately reflect the characteristics of inelastic demand. Option A, which suggests sales significantly increase with a price increase, overlooks that inelastic goods do not lead to substantial increases in quantity demanded with price hikes. Option C, stating that revenues increase when prices are lowered, conflicts with the behavior of inelastic goods, as lowering prices typically results in a decrease in total revenue. Finally, the option claiming sales remain unaffected by price changes understates the reality that even inelastic demand can still see some changes, albeit minimal,