5 A product has inelastic demand under which of the following conditions? When an increase or decrease in price has little effect on the amount supplied When an increase or decrease in price has little effect on the amount demanded When an increase or decrease in price has a significant effect on the amount demand When an increase or decrease in price has a significant effect on the amount supplied

When an increase or decrease in price has little effect on the amount demanded.<br /><br />Inelastic demand refers to a situation where the quantity demanded of a product is relatively insensitive to changes in its price. This means that even if the price of the product changes, the quantity demanded does not change significantly. In other words, consumers are not very responsive to price changes for inelastic goods.