Asked by
Princess Dennis
on Oct 26, 2024Verified
If a good is a necessity with few substitutes,all others things equal,then demand will tend to:
A) be more price-elastic.
B) be less price-elastic.
C) have price elasticity equal to 1.
D) be the same as that of a luxury good.
Necessity
A good or service that is essential for living and is deemed indispensable.
Few Substitutes
A market condition where there are limited alternative products or services available to consumers, often leading to higher prices.
Price-Elastic
A descriptor for goods or services whose demand significantly changes with a change in price.
- Discern between essential goods and luxury items by their respective price elasticity.
Verified Answer
GT
Learning Objectives
- Discern between essential goods and luxury items by their respective price elasticity.