ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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life-saving medicine
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television set
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computers
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a particular brand of chewing gum
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Detailed explanation-1: -Inelastic demand refers to the demand for a good or service remaining relatively unchanged when the price moves up or down. An example of this would be insulin, which is needed for people with diabetes.
Detailed explanation-2: -The most common goods with inelastic demand are utilities, prescription drugs, and tobacco products.
Detailed explanation-3: -True. Life saving medicines have inelastic demand. By inelastic we mean when the price changes that consumer buying habit remains the same. The consumer will not reduce the consumption of a life saving drug is the price increase and vice versa.
Detailed explanation-4: -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-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