A medicine such as insulin would most likely have a price elasticity of demand
A) equal to one.
B) close to zero.
C) greater than one in absolute value.
D) close to infinity.

Question

Quizplus · Accepted Answer

Medicines such as insulin are typically considered to be inelastic goods, meaning that changes in price have little effect on the quantity demanded. This is because people who need insulin are usually willing to pay whatever price is necessary to obtain it, as it is necessary to manage their health. Therefore, the price elasticity of demand for insulin would be close to zero, as changes in price would have little impact on the quantity demanded.

A Medicine Such as Insulin Would Most Likely Have a Price