Which of the following terms best describes a situation where price changes do not significantly affect demand?

The term that best describes a situation where price changes do not significantly affect demand is inelastic demand. This concept indicates that consumers will continue to purchase a product or service regardless of changes in its price. Typically, inelastic demand is associated with essential goods or services, such as basic food items, fuel, or medications, where consumers have little flexibility in their purchasing decisions despite price fluctuations.

In the case of inelastic demand, the percentage change in quantity demanded is less than the percentage change in price, which means that even when prices rise significantly, the quantity demanded remains relatively stable. This is crucial for businesses to understand, as it allows them to predict consumer behavior and make informed pricing strategies based on how essential their products are perceived to be by consumers.