Which of the following would most likely have elastic demand?
A) The demand for milk by a household
B) The demand for insulin medication by a diabetes patient
C) The demand for water
D) The demand for new houses
E) The demand for coal over a period of one month

Question

Quizplus · Accepted Answer

The demand for new houses is likely to be elastic because there are many substitutes and it is a significant expenditure, making consumers sensitive to price changes.

Which of the Following Would Most Likely Have Elastic Demand