The demand for petrol is perfectly inelastic because most people need petrol to drive their cars.

Question

Quizplus · Accepted Answer

While it is true that many people need petrol to drive their cars, the demand for petrol is not perfectly inelastic. This is because there are substitutes for petrol such as electric cars, public transportation or carpooling. Additionally, changes in price and availability of petrol can influence people's decisions to drive or not and to what extent. Therefore, the demand for petrol is more accurately described as relatively inelastic rather than perfectly inelastic.

The Demand for Petrol Is Perfectly Inelastic Because Most People