ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is a necessity
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Its cost is prohibitive
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Of consumer tastes
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The price of related goods
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Detailed explanation-1: -Demand for insulin is inelastic because adequate substitutes are not available. Insulin is a necessity and cannot be replaced with another medicine or simply not purchased, even if the price is high.
Detailed explanation-2: -The demand for insulin is inelastic because insulin is a necessity. People need medicines as a part of their basic health and that is why is considered a s basic necessity.
Detailed explanation-3: -For example, insulin is a product that is highly inelastic. For people with diabetes who need insulin, the demand is so great that price increases have very little effect on the quantity demanded.
Detailed explanation-4: -Inelastic products are usually necessities without acceptable substitutes. The most common goods with inelastic demand are utilities, prescription drugs, and tobacco products. Businesses offering such products maintain greater flexibility with prices because demand remains constant even if prices increase or decrease.
Detailed explanation-5: -It is used as a medicine to control the level of sugar in the body. For those individuals, even if the price of insulin is high, they have to purchase it as it classifies as a necessity. Individuals are not sensitive to changes in the prices of insulin. It, therefore, has an inelastic demand.