Of the following, which is the best example of a good with a perfectly inelastic demand?
A) the demand for tickets in New York City when the Mets or Yankees are in the World Series
B) the demand for gasoline
C) a diabetic's demand for insulin
D) the demand for a college education by a student who has a full scholarship to an Ivy League school

Question

Quizplus · Accepted Answer

A good with perfectly inelastic demand means that the quantity demanded does not change with any change in price. The demand for insulin by a diabetic fits this description as they require a specific amount of the medication to maintain their health and cannot substitute it for anything else. The other options do not have perfectly inelastic demand as they are subject to some level of substitution or adjustment in quantity demanded with changes in price.

Of the Following, Which Is the Best Example of a Good