Sales of the common necessities of life tend to increase sharply when there is a drop in their price.

Question

Quizplus · Accepted Answer

While a drop in price can lead to an increase in quantity demanded for many goods, the demand for common necessities of life (such as basic food items, water, and shelter) tends to be relatively inelastic, meaning that changes in price do not significantly affect the quantity demanded. People need these items in roughly the same quantities regardless of price changes.

Sales of the Common Necessities of Life Tend to Increase