What do products such as household electricity,tobacco and toothpicks have in common?
A)They are all inferior goods.
B)They all are likely to have incomes elasticities greater than one.
C)The demand for all three goods is elastic.
D)The demand for all three goods is inelastic.
E)They all have a large number of substitute goods.

Question

Quizplus · Accepted Answer

Household electricity, tobacco, and toothpicks are all basic necessities or essential items with limited substitutes. Therefore, the demand for these goods is likely to be inelastic, meaning that changes in price will have a minimal effect on the quantity demanded by consumers.

What Do Products Such as Household Electricity,tobacco and Toothpicks Have