Necessities tend to have more inelastic demand than luxuries.

Name: Necessities tend to have more inelastic demand than luxuries.
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Question

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Necessities such as food and healthcare are essential for survival and have limited substitutes. Therefore, their demand is less responsive to changes in price, making it more inelastic than the demand for luxuries, which have more substitutes and can be replaced with alternatives if the price changes.

Necessities Tend to Have More Inelastic Demand Than Luxuries