ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True/False:When there is not a substitute (insulin) consumer demand is inelastic.
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True
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False
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -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-2: -Answer and Explanation: The demand for insulin is inelastic because insulin is a necessity.
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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