Of the following, which is the best example of good with a perfectly inelastic demand?
A)the demand for tickets in New York City when the Mets or Yankees are in the World Series
B)the demand for gasoline
C)a diabetic's demand for insulin
D)the demand for a college education by a student who has a full scholarship to an Ivy League school

Question

Quizplus · Accepted Answer

A perfectly inelastic demand means that a change in price does not affect the quantity demanded. In the case of insulin, the demand is perfectly inelastic because diabetic patients need insulin to survive, and there are no substitutes available in the market. Therefore, regardless of the price, diabetic patients will continue to demand insulin.

Of the Following, Which Is the Best Example of Good