For which of the following is demand likely to be least sensitive to price increases?
A) Spring break vacations.
B) A specific brand of cereal.
C) Prescription drugs.
D) Theater tickets.
E) Restaurant meals.

Question

Quizplus · Accepted Answer

Prescription drugs are essential goods that are often prescribed by doctors to treat a specific illness or condition. As such, the demand for prescription drugs is less likely to be affected by price increases since consumers are dependent on them for their well-being and may not have suitable alternatives. The demand for medication is also less likely to be sensitive to changes in income since it is a necessity.

For Which of the Following Is Demand Likely to Be