If an item is a necessity rather than a luxury, its demand curve will be:
A)perfectly elastic.
B)perfectly inelastic.
C)relatively steep.
D)relatively flat.

Question

Quizplus · Accepted Answer

Necessities tend to have relatively steep demand curves because consumers will continue to buy them even if the price increases, indicating less sensitivity to price changes compared to luxury items.

If an Item Is a Necessity Rather Than a Luxury