Of the following choices, which good should have the most inelastic price elasticity of demand?
A)Gasoline to a car owner.
B)Cigarettes to a smoker.
C)Insulin to an insulin-dependent diabetic.
D)Apples to a vegetarian.

Question

Quizplus · Accepted Answer

Insulin is a necessity for an insulin-dependent diabetic to survive, therefore the demand for insulin is highly inelastic as the consumer is willing to pay any price for it. Insulin to an insulin-dependent diabetic is a necessity for their survival and there aren't many substitutes available in the market. As a result, the price elasticity of demand for insulin is very low or inelastic. Even if the price of insulin increases, diabetics are still going to buy it as it is their only option to control their condition.

Of the Following Choices, Which Good Should Have the Most