The demand for which of the following is likely to be the most price inelastic?
A) transportation
B) taxi rides
C) bus tickets
D) airline tickets

Question

Quizplus · Accepted Answer

Transportation is a broad category that includes various modes such as taxis, buses, and airlines. However, the demand for transportation, in general, is likely to be the most price inelastic as it is a necessary part of daily life, and consumers have limited substitutes. Even if the prices of individual modes of transportation such as taxis or airlines increase, consumers will still need to find a way to travel, and they might not be able to switch to other modes or choose not to travel altogether.

The Demand for Which of the Following Is Likely to Be