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 often does not apply.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

When a good is a necessity, the demand tends to be less responsive to changes in price, i.e., it is inelastic. This is because consumers feel that they need the good regardless of price, and therefore will continue to purchase it even if the price goes up.

For a Good That Is a Necessity