The price elasticity of demand for insulin by diabetic patients is much smaller than the price elasticity of demand for leather shoes. This is an example of how the price elasticity of demand:
A) falls the less specifically the good is defined.
B) rises the less specifically the good is defined.
C) falls the more a good is a necessity.
D) rises the more a good is a necessity.

Question

Quizplus · Accepted Answer

Insulin is a necessity for diabetic patients, making its demand inelastic, whereas leather shoes are not a necessity, making their demand more elastic.

The Price Elasticity of Demand for Insulin by Diabetic Patients