Necessities tend to have a(n) ______ demand than luxuries.
A) more elastic
B) more inelastic
C) equally elastic
D) equally inelastic

Question

Quizplus · Accepted Answer

Necessities are essential goods or services that people need to maintain a certain standard of living. The demand for necessities tends to be more inelastic because people are willing to pay a higher price for them regardless of changes in price, as they are considered crucial for survival. On the other hand, luxury goods or services are not necessary for survival, and their demand tends to be more elastic because people are willing to decrease or increase their consumption of such goods or services depending on the price.

Necessities Tend to Have A(n) ______ Demand Than Luxuries