The demand for gold has remained the same in the market irrespective of the rise in the price,as there is no other replacement for the product.This type of demand experienced by gold is referred to as a(n)_____.

Question

Quizplus · Accepted Answer

The situation described in the question is an example of inelastic demand. Inelastic demand refers to a situation where the demand for a product remains the same even if there is a change in its price. This type of demand is usually seen in products that are essential or have no close substitutes, as is the case with gold.

The Demand for Gold Has Remained the Same in the Market