ECONOMICS
DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Jason wants the most expensive cellphone. He decides to get a cheaper model.
|
|
|
Priya wants to go to the season-opening game. Tickets to another game cost less, but she still buys tickets for the opener.
|
|
|
Tianna wants to try out a new, expensive restaurant. She goes to another restaurant whose food is excellent and costs less.
|
|
|
Shawn wants to buy a house in one neighborhood. But after searching, he decides to buy a house elsewhere instead.
|
Detailed explanation-1: -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-2: -The most common goods with inelastic demand are utilities, prescription drugs, and tobacco products.
Detailed explanation-3: -If a price change for a product doesn’t lead to much, if any, change in its supply or demand, it is considered inelastic. Generally, it means that the product is considered to be a necessity or a luxury item for addictive constituents. Examples would be gasoline, milk, and iPhones.
Detailed explanation-4: -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