The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-Which of the following would most likely be highly price-elastic?
A)The demand for milk by a household
B)The demand for insulin by a diabetes patient
C)The demand for water
D)The demand for new houses
E)The demand for coal over a period of one month

Question

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1
 
-Which of the following would most likely be highly price-elastic?
A)The demand for milk by a household 
B)The demand for insulin by a diabetes patient 
C)The demand for water 
D)The demand for new houses 
E)The demand for coal over a period of one month

Quizplus · Accepted Answer

The demand for new houses is likely to be highly price-elastic because they are a significant purchase and consumers can delay buying or choose alternatives based on price changes.

The Figure Given Below Shows the Demand Curves for Five