During the first years of this century, the number of packages arriving at households has more than doubled. An increase in the price of the cardboard boxes in which these packages are shipped will have little effect on the amount of shipping done; the demand for the boxes will continue to increase. What type of demand is the demand for the cardboard boxes?

Question

Quizplus · Accepted Answer

The demand for cardboard boxes in this scenario is inelastic, meaning that a change in price will have little effect on the quantity demanded. This is because the demand for the boxes is derived from the increase in packages being shipped, which is not affected by the price of the boxes.

During the First Years of This Century, the Number of Packages