Demand for a necessity, such as food, is
A)both income and price inelastic
B)income inelastic and price elastic
C)income elastic and price inelastic
D)both income and price elastic
E)income elastic and perfectly price inelastic

Question

Quizplus · Accepted Answer

Necessities like food tend to have inelastic demand because consumers will buy them regardless of price changes (price inelastic) and their demand doesn't increase significantly with income changes (income inelastic).

Demand for a Necessity, Such as Food, Is