During the COVID 19 Pandemic we are all experiencing now, and the information campaign from the Center for Disease Control highlighting that bacteria and other organisms cause and spread disease, will the demand curve for soap be more elastic or more inelastic?

DEMAND

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	More elastic
B	More inelastic
C	Either A or B
D	None of the above

Explanation:

Detailed explanation-1: -There are several factors that affect how elastic (or inelastic) the price elasticity of demand is, such as the availability of substitutes, the timeframe, the share of income, whether a good is a luxury vs. a necessity, and how narrowly the market is defined.

Detailed explanation-2: -The concept of elasticity allows us to improve upon our understanding of supply and demand by studying how sensitive each force is to changes in the other. Elasticity measures the change in supply or demand when there is a change in price.

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: -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.

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ECONOMICS (CBSE/UGC NET)

ECONOMICS

DEMAND