IB Economics Higher Level (HL) Practice Exam 2026 - Free IB Economics HL Practice Questions and Study Guide

The term that best describes a situation where quantity demanded does not change significantly even when prices increase is inelastic demand. Inelastic demand refers to a scenario where consumers are relatively insensitive to price changes, meaning that even if the price rises, the quantity they are willing and able to purchase does not decrease substantially. This often occurs with essential goods or services that have few substitutes, as consumers will continue to buy them despite higher prices.

Inelastic demand is characterized by a price elasticity of demand that is less than one, indicating that the percentage change in quantity demanded is smaller than the percentage change in price. This concept is crucial in understanding consumer behavior and market dynamics, particularly for products deemed necessities.

In contrast, elastic demand indicates that quantity demanded changes significantly in response to price changes, which is not the case in this scenario. Other terms listed, such as stagnant and volatile demand, are not standard economic terms used to describe price sensitivity and do not accurately convey the concept of demand responsiveness to price changes.