The correct answer is: B. Inelastic
The demand for life-saving drugs is inelastic because people are willing to pay a high price for them, even if the price goes up. This is because life-saving drugs are essential to people’s health and well-being, and people are willing to do whatever it takes to get them.
An inelastic demand curve is a curve that shows that the quantity demanded of a good or service does not change much when the price of the good or service changes. This means that people are not very sensitive to changes in price when it comes to essential goods and services.
In contrast, an elastic demand curve is a curve that shows that the quantity demanded of a good or service changes a lot when the price of the good or service changes. This means that people are very sensitive to changes in price when it comes to non-essential goods and services.
Here are some examples of goods and services that have inelastic demand curves:
- Life-saving drugs
- Food
- Water
- Housing
Here are some examples of goods and services that have elastic demand curves:
- Luxury goods
- Vacations
- Electronics
- Clothes
I hope this helps! Let me know if you have any other questions.