ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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More elastic
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More inelastic
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Either A or B
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None of the above
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Detailed explanation-1: -Demand of coal is elastic if a change in price leads to a bigger percentage change in demand; therefore, the PED will be greater than one. When the PED is greater than one, the good is considered as price elastic and this shows meaning that the demand is responding to price change.
Detailed explanation-2: -Which of the two goods is more likely to be inelastically demanded and why: Demand for insulin vs. demand for vitamins? Insulin is probably more of a necessity; thus, demand for insulin from buyers is more inelastic than demand for vitamins for buyers of vitamins.
Detailed explanation-3: -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-4: -Examples of goods with inelastic demand include gasoline, necessary foods, and prescription drugs. When price changes on these items, demand doesn’t fluctuate much because these items are required in the everyday lives of most consumers.