which product most likely has a demand that is inelastic?
Which product most likely has a demand that is inelastic?
Answer:
Demand is considered inelastic when the quantity demanded does not change significantly in response to a price change. This typically applies to essential goods or services that consumers consider necessary regardless of their price. Here are some products with typically inelastic demand:
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Necessities:
- Basic Food Items: Products like bread, rice, and milk are essential for daily consumption, making them inelastic.
- Utilities: Water, electricity, and gas have inelastic demand as they are necessary for daily living.
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Medical Supplies:
- Medications: Essential medications, such as insulin for diabetics, have highly inelastic demand as they are critical for health.
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Addictive Goods:
- Tobacco and Alcohol: These products often have inelastic demand due to addictive properties. Consumers may continue purchasing them despite price increases.
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Transportation Fuel:
- Gasoline: Often an inelastic product because many people rely on it for daily commuting and transportation needs.
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Professional Services:
- Healthcare Services: Visits to doctors or emergency medical treatment are inelastic as they are crucial and often cannot be delayed.
In summary, products necessary for basic living, those with addictive qualities, or services that are essential for well-being, typically exhibit inelastic demand.