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Homework answers / question archive / The demand for a good is inelastic
The demand for a good is inelastic. Which of the following would be an explanation for this? The good is specifically defined. The good is a necessity. The good costs a large portion of one's total income. The time interval considered is long. A Moving to another question will save this response.
Answer is Option B - The good is necessity
Explanation :
If demand for a good is inelastic, this means the demand of the good will not change much even if the price of the good varies highly.
This will generally happen in case of Necessity goods, which people will not stop purchasing even if the prices rise.
