Sarah has been told that she has only 1 week to finish some pottery for a show.Sarah has exhausted her supply of clay,and new clay is absolutely necessary for finishing her products.For Sarah,the price elasticity of demand for new clay right now is elastic.

Question

Quizplus · Accepted Answer

Price elasticity of demand is inelastic when a product is a necessity and there are no close substitutes, as is the case with Sarah needing clay urgently to finish her pottery.

Sarah Has Been Told That She Has Only 1 Week