If a good is very inexpensive but is a necessity,you predict that demand for the good:
A)is price-elastic.
B)is price-inelastic.
C)is price unit-elastic.
D)has indeterminable price elasticity.

Question

Quizplus · Accepted Answer

The fact that the good is a necessity indicates that consumers will continue to purchase it regardless of changes in its price. Additionally, the low cost of the good may mean that consumers are not particularly sensitive to price changes. These characteristics suggest that demand for the good is price-inelastic.

If a Good Is Very Inexpensive but Is a Necessity,you