The demand for a good is inelastic. Which of the following would be an explanation for this?
A) The good is a necessity.
B) The good is specifically defined.
C) The good costs a large portion of one's total income.
D) The time interval considered is long.

Question

Quizplus · Accepted Answer

Inelastic demand often occurs for necessities because consumers will continue to buy them even if the price increases, as they are essential for daily life.

The Demand for a Good Is Inelastic