What is true about the price elasticity of demand for products such as sugar,salt and household electricity?
A)It is perfectly elastic.
B)It is perfectly inelastic.
C)It is relatively elastic.
D)It is relatively inelastic.

Question

Quizplus · Accepted Answer

The price elasticity of demand for products such as sugar, salt, and household electricity is relatively inelastic because these products are necessities and have very few substitutes. Consumers will continue to purchase these products even if their prices increase, albeit at a slightly lower quantity. Therefore, the demand for these products is relatively insensitive to changes in price.

What Is True About the Price Elasticity of Demand for Products