[amp_mcq option1=”inelastic” option2=”elastic” option3=”unity” option4=”None of these” correct=”option1″]<\/p>\n
The correct answer is A. inelastic.<\/p>\n
Inelastic demand is a situation in which the quantity demanded of a good or service changes very little in response to a change in price. This is because necessities are goods or services that people need to survive and cannot easily do without. For example, if the price of bread goes up, people will still need to buy bread to eat, so they will not reduce their consumption very much.<\/p>\n
Elastic demand is a situation in which the quantity demanded of a good or service changes a lot in response to a change in price. This is because luxury goods are goods or services that people do not need to survive and can easily do without. For example, if the price of a new car goes up, people may decide to buy a used car instead, or they may decide to keep their old car for a longer period of time.<\/p>\n
Unity demand is a situation in which the quantity demanded of a good or service changes exactly in proportion to a change in price. This is a theoretical concept that does not occur in reality.<\/p>\n
In conclusion, the demand for necessities is relatively inelastic because people need these goods and services to survive and cannot easily do without them.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”inelastic” option2=”elastic” option3=”unity” option4=”None of these” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-52161","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n