ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The demand for products or services for which there are no substitutes tends to be
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somewhat elastic
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unit elastic
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quite inelastic
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perfectly elastic
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Explanation:
Detailed explanation-1: -An inelastic demand is one in which the change in quantity demanded due to a change in price is small.
Detailed explanation-2: -Inelastic demand is when a buyer’s demand for a product does not change as much as its change in price. When price increases by 20% and demand decreases by only 1%, demand is said to be inelastic.
Detailed explanation-3: -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.
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