For a good that is a necessity, a. quantity demanded tends to respond substantially to a change in price. b. demand tends to be inelastic. c. the law of demand does not apply.

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Asa

7 June, 06:16

For a good that is a necessity, a. quantity demanded tends to respond substantially to a change in price. b. demand tends to be inelastic. c. the law of demand does not apply.

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Annabel Villa · Answer 1

The correct answer is letter "B": demand tends to be inelastic.

Explanation:

Inelasticity is a characteristic that goods and services have by which their demand does not change in front of fluctuations in price. Consumer staples are considered inelastic goods since people need them to cover basic needs.

Inelasticity is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the result is lower than one (1) the demand for that good or service is inelastic.