The demands for wheat, soybeans, milk, and eggs tend to be
A)price inelastic
B)price elastic
C)price inelastic only in the long run
D)price elastic only in the short run
E)price elastic only in the long run

Question

Quizplus · Accepted Answer

These four goods are considered necessities for most households and have limited substitute goods, meaning that changes in price have a minimal impact on demand. Therefore, these goods tend to have an inelastic demand where the quantity demanded does not change much in response to a change in price. This is especially true in the short run, where consumers have limited time to adjust their consumption patterns.

The Demands for Wheat, Soybeans, Milk, and Eggs Tend to Be