ECONOMICS
DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
More elastic
|
|
|
More inelastic
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -The demand curve for soap after wide understanding that bacteria and other organisms cause and spread disease More inelastic, because soap is viewed more as a necessity than a luxury.
Detailed explanation-2: -Inelastic demand occurs when the ratio of quantity demanded to price is between zero and one unit elastic. This typically occurs when a particular good or service lacks adequate substitutes and represents a necessity. Examples of goods with inelastic demand include gasoline, necessary foods, and prescription drugs.
Detailed explanation-3: -Demand Curves and Elasticity Elasticity affects the slope of a product’s demand curve. A greater slope means a steeper demand curve and a less-elastic product.
Detailed explanation-4: -If a demand curve is perfectly vertical (up and down) then we say it is perfectly inelastic. If the curve is not steep, but instead is shallow, then the good is said to be “elastic” or “highly elastic.” This means that a small change in the price of the good will have a large change in the quantity demanded.