BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The demand for necessities is inelastic. By inelastic demand we mean that as the price of the commodity changes the quantity demand does not change. The consumer will not buy lesser of the commodity of the price increases. Example :-Life saving medicine.

Detailed explanation-2: -The demand for necessities or necessary goods is inelastic because whatever may be the changes in the price of these goods, their demand does not change drastically. For example demand for milk, salt, etc.

Detailed explanation-3: -Inelastic demand is when a buyer’s demand for a product does not change as much as its change in price. When price increases by 20% and demand decreases by only 1%, demand is said to be inelastic. This situation typically occurs with everyday household products and services.

Detailed explanation-4: -Necessities and medical treatments tend to be relatively inelastic because they are needed for survival, whereas luxury goods, such as cruises and sports cars, tend to be relatively elastic.

Detailed explanation-5: -Normal goods whose income elasticity of demand is between zero and one are typically referred to as necessity goods, which are products and services that consumers will buy regardless of changes in their income levels. Examples of necessity goods and services include tobacco products, haircuts, water, and electricity.