Home » Economics » Economics miscellaneous » Question

Economics miscellaneous

  1. The demand for necessities is
    1. elastic
    2. perfectly inelastic
    3. inelastic
    4. perfectly elastic
Correct Option: B

Inelastic demand means that if the price changes, the quantity demanded will not change much. The more necessary a good is, the lower the elasticity, as people will attempt to buy it no matter the price. Necessities such as water are likely to have perfectly inelastic demand.



Your comments will be displayed only after manual approval.