Sales of the common necessities of life tend to decrease sharply when there is an increase in their price.

Question

Quizplus · Accepted Answer

While it might seem intuitive that sales would decrease with price increases, the demand for common necessities of life (such as food, water, and basic household supplies) is relatively inelastic. This means that even when prices increase, the quantity demanded doesn't drop sharply because these items are essential for daily living.

Sales of the Common Necessities of Life Tend to Decrease