ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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an old car
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doughnuts
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medicine for a life-threatening condition
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None of the above
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Detailed explanation-1: -An example of this would be insulin, which is needed for people with diabetes. As insulin is an essential medication for diabetics, the demand for it will not change if the price increases, for example.
Detailed explanation-2: -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.
Detailed explanation-3: -The most common goods with inelastic demand are utilities, prescription drugs, and tobacco products.
Detailed explanation-4: -Answer and Explanation: The heart medicine will have a more inelastic price elasticity of demand as compared to the newest video game. The reason is that the heart medicine is a necessity and needs to be purchased even if prices increase. Therefore, demand is relatively inelastic.
Detailed explanation-5: -Petrol – petrol has few alternatives because people with a car need to buy petrol. For many driving is a necessity. Salt. A good produced by a monopoly. Tap water. Diamonds. Peak rail tickets. Cigarettes. Apple iPhones, iPads. 04-May-2019