The price elasticity of demand for insulin (a hormone necessary to treat Type I diabetes) is:
A) likely to be perfectly inelastic over some range of prices.
B) perfectly elastic.
C) always perfectly inelastic.
D) low relative to the price elasticity of supply.

Question

Quizplus · Accepted Answer

The demand for insulin is likely to be perfectly inelastic over some range of prices because it is a necessary and life-saving medication for those with Type I diabetes. People with Type I diabetes need insulin to survive, and the demand for it is not impacted by price changes within a certain range. However, the price elasticity of demand for insulin may not always be perfectly inelastic as people may resort to alternative treatments if the price becomes too high.

The Price Elasticity of Demand for Insulin (A Hormone Necessary