The demand for gold has remained the same in the market regardless of the rise in its price,because there is no other replacement for the product.This type of demand experienced by gold is referred to as a(n)_____.

Question

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Inelastic demand refers to a situation where the demand for a product remains the same even when there is a change in its price. In this case, gold is seen as a unique product with no close substitutes which makes its demand relatively inelastic.

The Demand for Gold Has Remained the Same in the Market