The demand for a good that is a necessity is likely to be ________.
A) unit elastic
B) perfectly elastic
C) relatively elastic, but not perfectly elastic
D) inelastic

Question

Quizplus · Accepted Answer

Necessities are goods that individuals require in their daily lives and cannot easily replace. Due to this, the demand for a necessity is likely to be inelastic, meaning that a change in price will have a relatively small impact on the quantity demanded. Consumers will continue to purchase the good despite price increases because they need it for their daily lives.

The Demand for a Good That Is a Necessity Is