If the demand for a good is inelastic, then the good must be a necessity.

Name: If the demand for a good is inelastic, then the good must be a necessity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The demand for a good being inelastic means that consumers' purchase quantity changes little with price changes, but this does not necessarily mean the good is a necessity. It could also be due to lack of substitutes, consumer loyalty, or the good representing a small portion of the budget.

If the Demand for a Good Is Inelastic, Then the Good