If you think good wine is a necessity but cheese is a luxury, then your demand for wine will be more ______ than your demand for cheese:
A)elastic
B)inelastic
C)unit elastic
D)strong

Question

Quizplus · Accepted Answer

Inelastic demand means that consumers are less sensitive to price changes, implying they will continue to buy the product even if the price increases. If you consider good wine a necessity, you're likely to continue purchasing it regardless of price changes, indicating inelastic demand. Conversely, viewing cheese as a luxury suggests a more elastic demand, where purchases might decrease if prices rise.

If You Think Good Wine Is a Necessity but Cheese