For a good that is a necessity,
A)quantity demanded tends to respond substantially to a change in price.
B)demand tends to be inelastic.
C)the law of demand does not apply.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

When a good is a necessity, it tends to have a limited number of substitutes, making the demand for that good relatively inelastic. This means that even if the price of the good increases, the quantity demanded may not decrease significantly as consumers may be willing to pay the higher price to obtain the necessary good.

For a Good That Is a Necessity