INTRODUCTION TO ENTREPRENEURSHIP
DEFINITION OF ENTREPRENEURSHIP
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Habit forming products
|
|
|
Goods with substitutes
|
|
|
Goods in a market with many suppliers selling similar products
|
|
|
Non-necessities
|
Detailed explanation-1: -The most common goods with inelastic demand are utilities, prescription drugs, and tobacco products. In general, necessities and medical treatments tend to be inelastic, while luxury goods tend to be most elastic.
Detailed explanation-2: -Understanding Inelastic Demand Necessities and medical treatments tend to be relatively inelastic because they are needed for survival, whereas luxury goods, such as cruises and sports cars, tend to be relatively elastic.
Detailed explanation-3: -The answer is: b. table salt. Inelastic demand is when people buy the same amount of something even if there’s a change in price. Salt is often used as an example of a perfectly inelastic good.
Detailed explanation-4: -Habit forming purchases: Addictive products like alcohol and tobacco tend to be more inelastic, because consumers are more likely to purchase them no matter the price. This is why taxes are often added to products like cigarettes.