Which one of the following products would tend to have inelastic demand?
A) luxury sedans
B) candy
C) crude oil
D) Black Angus T-bone steak

Question

Quizplus · Accepted Answer

Crude oil tends to have inelastic demand because it is a necessity for many industries and there are few substitutes available in the short-term. This means that changes in price do not significantly affect the quantity demanded. Luxurious items like luxury sedans tend to have elastic demand because consumers can easily switch to a substitute if the price gets too high. Candy and Black Angus T-bone steak tend to have relatively elastic demand as well because there are many alternatives available.

Which One of the Following Products Would Tend to Have