What type of goods have a price elasticity of demand that is inelastic?Luxury goods.Necessities.Substitute goods.Complementary goods
Question
What type of goods have a price elasticity of demand that is inelastic?Luxury goods.Necessities.Substitute goods.Complementary goods
Solution
Necessities are the type of goods that have a price elasticity of demand that is inelastic. This is because the demand for these goods does not change significantly with changes in price. People need these goods for their daily life, such as food, water, and housing, so they will buy them regardless of price changes. On the other hand, luxury goods, substitute goods, and complementary goods tend to have elastic demand because people can choose not to buy them or to buy other goods instead if prices increase.
Similar Questions
Page(s) 117-1184.1. What is the price elasticity of demand, and what are its determinants?How does the existence of substitutes for a product affect the product’s price elasticity of demand?The existence of substitutes leads to higher prices in the marketplace.If there are many substitutes, the price elasticity of the good will be elastic.The existence of substitutes leads to a situation with perfect elasticity.The existence of substitutes makes the price elasticity of demand inelastic.
If the price elasticity of demand for a good is greater than one, then the demand for that good is: Group of answer choices 1.inelastic. 2.unit elastic. 3.elastic. 4.perfectly elastic.
The price elasticity of a demand for a good:A.can vary from person to person.B.can be affected by the number of substitutes.C.can change over time.D.depends on the proportion of income the good requires in order to be purchased.E.All of the above
elasticity of demand and its types in details
An inelastic demand means thata.the change in quantity demanded is equal to the change in price.b.consumers respond directly to a change in income.c.consumers hardly respond to a change in price.d.consumers respond substantially to a change in price.
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